The price of Bitcoin has fallen below $40,000 for the first time since early December as the downturn in the cryptocurrency market gets deeper. At the start of Tuesday’s Asian trading session, Bitcoin touched $39,500, the lowest price it has seen in seven weeks.
The BTC downturn started at its peak of $48,969 on January 11 and has seen a 20% drop due to the almost 3% daily decline. Analysts also forecast that the correction would last and reach up to 30%, which would bring the price of Bitcoin back down to $34,000.
CoinGlass, an on-chain analytics tool, released a liquidation heatmap on January 23 that showed a yellow spot near $34,000. Additionally, $225 million in liquidations have occurred in the last 24 hours, according to CoinGlass. For Ethereum and Bitcoin, the majority had long positions.
It said, “Grayscale continues to dump the market,” and then went on to say that the company’s Bitcoin Trust (GBTC) still had more than 550,000 BTC.
Nonetheless, since the launch of the spot ETFs, fund issuers have net-purchased 27,717 BTC, according to CC15Capital. Despite the outflow from GBTC, that totals up to almost $1.1 billion at the current exchange rate.
The FTX GBTC estate sale was swiftly absorbed by Bitcoin ETFs with little effect, according to Tether and VanEck strategist Gabor Gurbacs.
“Estate sales are no longer a catastrophe,” he declared, then continued, “Bitcoin is flowing from weak hands to strong hands. Glad we made the ETFs possible. It changes the game and tames downside volatility.”
