Bitcoin Price Action Explained: Here’s the Real Reason BTC Dropped After ETF Approval

Bitcoin Price Action Explained: Here's the Real Reason BTC Dropped After ETF Approval

2024 has already proven to be a wild ride for Bitcoin investors. In what was probably the most exciting financial product launch in history, the SEC approved 10 spot Bitcoin ETF products for trading in US markets.

2024 has already proven to be a wild ride for Bitcoin investors. In what was probably the most exciting financial product launch in history, the SEC approved 10 spot Bitcoin ETF products for trading in US markets.

Advertisement

In reaction, BTC prices rose to a new multi-year high, reaching $49,102. The market then fell 18% over the weekend, hitting new year-to-date lows of $40,236.

As with any major event, Bitcoin holders enjoy debating whether its price was included or not.

In this regard, Julio Morenohead of research at CryptoQuant, debunks the widely held narrative that the Bitcoin price drop was caused by Grayscale’s GBTC sale of Bitcoin.

Before converting to an ETF from a trust, Grayscale Bitcoin Trust (GBTC) was one of the only options for stock traders in the United States to gain exposure to Bitcoin price swings without having to purchase the actual cryptocurrency.

While GBTC has seen notable outflows after being included in an ETF, a large portion of them have come from investors moving to ETFs with lower fees.

Moreno highlighted that while GBTC sold approximately 60,000 Bitcoins, other Bitcoin ETFs net bought approximately 72,000 Bitcoins, thus offsetting Grayscale’s GBTC’s BTC sales.

He attributes the volatility in Bitcoin’s price to sales by Bitcoin holders (short-term traders and whales) who made profits following last year’s surge, noting that the approval of the ETF could simply be the event of “selling the news”.

What on-chain data says

According to the on-chain analysis firm glass nodeBitcoin’s price drop could have been driven by both derivatives leverage and spot profit taking.

However, several metrics in both the on-chain and derivatives domains suggest that a non-trivial portion of Bitcoin investors treated the ETF approval as a news-selling event.

Related
Key reasons why Bitcoin (BTC) hashrate reached unprecedented heights

While there are other key factors behind the interim volatility, both the futures and options markets have seen a significant increase in open interest (OI) since mid-October, according to Glassnode.

Open interest in both markets remains around multi-year highs, showing that leverage is increasing and becoming a more dominant force in the markets.

At the time of writing, BTC was up 0.58% in the last 24 hours to $41,543, according to data from CoinMarketCap.

Leave a Reply

Your email address will not be published. Required fields are marked *

Best Exchanges
Buy, trade, and hold 600+ cryptocurrencies on Binance
Buy, trade, and hold 450+ cryptocurrencies on ByBit
Buy, trade, and hold 150+ cryptocurrencies on Kucoin
Buy, trade, and hold 100+ cryptocurrencies on BitFinex 
Buy, trade, and hold 150+ cryptocurrencies on CoinBase

Guru Investing is an independent source of information about investing , not controlled by any broker. All our reviews and guides are created honestly, according to the best knowledge and judgement of the members of our independent expert team; however, they are intended for informative purposes only and should not be construed as, nor relied upon as, legal advice. You should always make sure that you meet all regulatory requirements before making any financial operations . Copyright ©2024 Email for contact [email protected]
follow telegram
pornhd.com hindisexyporn.com kashmiri girls sex jayasex indaporn.info desi bhabi xxx xlnindia sexo-vids.com 1st time sex video たかはししょうこ動画 javfuck.mobi 真正中出し3本番 彩乃なな sex film sexy film xxxhindividoes.com xnxx indian teens
ano nga ba ang pangarap iwantmoreteleserye.com hello heart episode 3 reshma hot saree images nuporn.mobi xvidies com bihar chudai tubezaur.mobi heroine photo hot dasixx hardcoreporntrends.com ileana d'cruz hot photoshoot www.xxxsexvideo.com xbeegtube.mobi hindi movi
www sxe vidoes erohardcore.info boops sucking dehati fuck kitporn.info chuk chuk rail fuckcomix.com mojoporntube.net gujaratisexvidio probinsyano october 18 2021 full episode freeteleseryetv.net ang probinsyano july 14 2022 قصص سكس كرتون cmsextra.net سكس بنات تخينة