Last weekend, the price fluctuations of Bitcoin (BTC) once again became the focus of the market. After experiencing the speculation of the ETF, the BTC price fell below the $42,000 mark several times, indicating weak trading volume and market sentiment instability.
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Large Liquidations within 24 Hours, BTC Liquidations of $26 Million
Sell the News Effect
ETF Performance Impressive, GBTC Funds Still Outflowing
Compared with SPY and QQQ
GBTC Funds Outflowing
Experts Expecting a Supply Shortage to be Triggered
According to coinglass data, in the past 24 hours, the overall contract market liquidated $26.49 million in BTC, with long liquidations accounting for the majority at $18.8 million. Other currencies also experienced mostly long liquidations, with only a few tokens such as XAI and TIA bucking the trend and rising.
The approval and launch of Bitcoin spot ETF initially drove the surge in Bitcoin price, reaching nearly $49,000. 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 at the beginning of January that the true “Sell the News” moment would be when the ETF is actually launched, rather than when it is approved. It seems that this prediction has come true. (Aylo: Bitcoin Sell the news won’t happen when the ETF is approved, Q1 will inevitably see a big drop)
Comparing Bitcoin spot ETF with SPY and QQQ, which had the highest trading volume last year, Bitcoin spot ETF has performed very well in terms of trading frequency, trading volume, and nominal trading volume (referring to actual transaction amount). (Bitcoin spot ETF’s trading volume broke $10 billion in the first two days, is it a success or a bubble?)
On the first day, Grayscale’s 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’s (FBTC) $227 million, and then BlackRock’s (IBIT) $112 million.
The market has been cautious about the outflow of funds from Grayscale’s GBTC ETF. Since 2022, the fund’s holders have been in a loss-making state, and they may be looking for opportunities to sell and recover their losses.
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, thereby pushing the Bitcoin price to new highs. (Traditional finance professionals: After the approval of Bitcoin spot ETF, it will be widely adopted by a large number of 401(k) retirement plans)
BTC
ETF
GBTC
Bitcoin
Further reading:
Bitcoin Native EVM-Compatible Rollup SatoshiVM, a Step-by-Step Guide on How to Cross-Chain into the Ecosystem
ETF Inventor Stands Firm! Vanguard Withdraws from Bitcoin Futures, Cementing its Position on “Non-Cryptocurrency” Investments