Bitcoin Plunges Below $42K Multiple Times, Bull Traders Liquidate: GBTC Funds Withdrawn, Experts Still Hope for Long-term Supply Shortage
Last weekend, the price fluctuations of Bitcoin (BTC) once again became the focus of the market. After experiencing the speculation of ETF, the BTC price repeatedly fell below the $42,000 mark, indicating weak trading volume and market sentiment instability.
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Large-scale liquidation within 24 hours, BTC liquidation of $26 million
“Sell the news” effect
ETF performance outstanding, GBTC funds still outflowing
Compared with SPY and QQQ
GBTC funds outflowing
Experts expect it to trigger a supply shortage
According to Coinglass data, in the past 24 hours, the overall contract market liquidated $26.49 million of BTC, with majority being long liquidations, amounting to $18.8 million. Most other currencies also experienced long liquidations, with only a few tokens such as XAI and TIA bucking the trend and rising.
Initially, the approval and launch of Bitcoin spot ETF drove the surge in Bitcoin prices, reaching nearly $49,000 at one point. However, after the excitement, the price showed a significant decline, partly due to the market’s reaction to the “Sell the news” event.
KOL Aylo predicted earlier this month that the real “Sell the News” moment would be when the ETF is actually launched, rather than when it is approved. It now appears to be a prophecy fulfilled.
Comparing the Bitcoin spot ETF with SPY and QQQ, which had the highest trading volume last year, in terms of trading frequency, trading share volume, and even nominal trading volume (referring to actual transaction amount), the Bitcoin spot ETF has performed quite well.
On the first day, Grayscale GBTC saw an outflow of $95.07 million, while other funds had net inflows. The champion on the first day was Bitwise (BITB) with $238 million, followed by Fidelity (FBTC) with $227 million, and then BlackRock (IBIT) with $112 million.
The market is cautious about the outflow of funds from Grayscale’s GBTC ETF. Since 2022, the fund’s holders have been in a state of loss, and they may be looking for opportunities to sell and recover their investment.
Experts believe that if these institutions continue to buy Bitcoin in large quantities at the same level, it may trigger a supply shortage within a few months and drive Bitcoin prices to new highs.
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Further reading:
Bitcoin-native EVM-compatible Rollup SatoshiVM, a step-by-step guide on how to enter the ecosystem across chains
ETF inventor withdraws! Vanguard withdraws from Bitcoin futures, consolidating its position on “non-cryptocurrency” investments
