BTC will go down as it comes under pressure from the key support zone at $40k
Bitcoin price is currently close to $40,480 after falling 3% in the last 24 hours. As Greyscale sells more Bitcoin between GBTC exits, BTC faces pressure.
Bitcoin (BTC) prices saw another selloff on Monday as the crypto fell more than 3% to hover above the key $40,400 level.
With today's BTC decline, the global crypto market cap has fallen by nearly 4% to $1.65 trillion over the past 24 hours. The outlook is one of widespread altcoin weakness – Ether prices below $2,400, Solana down from $87 and XRP down to $0.52.
Injectable, Near Protocol and Avalanche were some of the biggest losers with double-digit declines in the past 24 hours.
Bitcoin price drops amid Grayscale BTC dump
The major cryptocurrency struggle came when GBTC issuer Greyscale Investments transferred more of its BTC holdings to Coinbase Prime. Prices have dropped significantly in the past week amid growing GBTC outflows.
Grayscale moved another 15,308 BTC when trading markets opened on Monday, according to on-chain data from blockchain security and market intelligence platform Arkham Intelligence. Since January 22, 2024, the total amount transferred has increased to over 63,991.
In total, the digital asset manager has deposited more than $2.68 billion worth of BTC into Coinbase Prime since the GBTC exchange-traded fund began trading on January 11.
Arkham's data shows that Grayscale still holds 549,116 BTC worth more than $22.3 billion.
Grayscale deposited 15,308 $BTC($623.8M) to #CoinbasePrime 50 minutes ago.
Since the ETF was approved, #Grayscale has deposited $63,991BTC ($2.68B) into #CoinbasePrime during the opening hours of US stocks (14:30 UTC).
According to Arkham, #Grayscale currently holds 549,116… pic.twitter.com/i1LtKryu6W
— Lookonchain (@lookonchain) January 22, 2024
BTC price view
If the selling pressure associated with GBTC continues to increase, Bitcoin price may swing below a critical support level. Bears may be more likely to target lower areas if fresh panic selling hits the market.
However, if bulls reverse higher on a strong advance from current levels, Bitcoin price could see the 43k barrier. The recent high above $49k could be the main resistance zone if it continues higher.
BTC traded at $40,480 at 11:30 am ET on Monday.
