Bitcoin Price Drops to 6-Week Below $40K — What’s Next for BTC?
Bitcoin price has fallen below $40,000 for the first time since December 3, 2023, as the GBTC-linked BTC selloff on Coinbase continues to negatively impact investor sentiment across the crypto market.
According to CoinMarketCap data, Bitcoin (BTC) has fallen rapidly from a price of $41,553, sinking more than 4.3% in the last 24 hours and more than 9.3% in the last 30 days, to a six-week low of $39,450, according to CoinMarketCap data. .
Bitcoin's price performance has been blamed for the market's decline as traders are rattled by the unexpected outcome of the Securities and Exchange Commission's approval of 11-location Bitcoin ETF products in the US.
RELATED: Crypto Fund Withdrawal Hits $24.7M As Selling GBTC Impacts Bitcoin Price
Grayscale placed over $600 million worth of BTC on Coinbase on January 22nd, bringing the total to over $2 billion. Meanwhile, loss managers sold a total of 22 million GBTC shares of FTX – worth nearly $1 billion, adding to the price headwind.
$GBTC sold >$2 billion after conversion to #BitcoinETF investors
FTX's bankruptcy filing resulted in >$1 billion worth of BTC being sold.
GBTC discount for NAV arbitrage trading to >$1 billion to lock in profits.
All that for a relatively short sale and… pic.twitter.com/e0I0ms3y3D
— CJK (@CJKonstantinos) January 22, 2024
The last time Bitcoin traded below $40,000 was about a month and a half ago, in 2015. It hit a low of $39,293 on December 3, 2023, before reaching a 20-month high of $49,000 on January 11.
A trader and analyst suggested BTC trade below $40,000.
#Bitcoin wicked below 40k to REKT all retail lengths. We hope this support zone will last! I want to see more than 40k closes every day!
Bull just got in! FTX is already 2/3 sold in 3 days. They have 1/3 of their Greyscale holdings left. $BTC #Altcoins bleeding heavily! pic.twitter.com/AwU34WoFmG
— Seth (@seth_fin) January 22, 2024
According to data from Coinglass, long position liquidators paid $56 million for Bitcoin on the day, and the number is still rising at the time of writing. Cristo-Crito's long liquidations topped $208.7 million.
At the time of writing, BTC has recovered slightly and is now trading at $40,245.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
