BTC Price Dips with 600M Dollars GBTC Offload, Approaching 2-Month Lows

Crypto News- As the Wall Street opened on January 23, Bitcoin saw a significant decline, hitting its lowest levels since the beginning of December. The price dropped to $38,505 on Bitstamp, facing a familiar scenario of institutional sell-offs and diminishing demand, erasing nearly two months’ worth of gains.

BTC Price Dips with 600M Dollars GBTC Offload, Approaching 2-Month Lows

The spotlight was on the Grayscale Bitcoin Trust (GBTC), a massive investment vehicle still managing over $20 billion in assets despite substantial Bitcoin offloading this month. On January 23, approximately 15,200 BTC ($590 million) moved from known GBTC holdings to custodian Coinbase, as reported by crypto intelligence firm Arkham.

While some remained skeptical, popular trader Daan Crypto Trades noted a decrease in net flows, pointing out that other ETFs were absorbing the impact. The attention also turned to the United States’ new spot Bitcoin exchange-traded funds (ETFs), which were receiving inflows to counteract GBTC exits.

Bitcoin Hits 2-Month Low at 39,101 Dollars: GBTC Sell-Off Sparks Market Turmoil

Blame for the market downturn was not solely on GBTC operator Grayscale; forced liquidations and offloading by the now-defunct exchange FTX, with considerable GBTC holdings before its demise, were also cited. Adam Back, CEO of Bitcoin technology firm Blockstream, clarified that selling GBTC for BTC doesn’t push the Bitcoin price down; it’s the selling for USD and keeping it in USD that does.

Amidst spot liquidations, BTC longs faced substantial losses, with a total of $110 million wiped out during the two days through January 23, according to CoinGlass data. Despite short-term challenges, optimists argued for a longer-term perspective, suggesting that current downside pressures wouldn’t indefinitely impact the market.

Eric Balchunas, a dedicated ETF analyst at Bloomberg Intelligence, celebrated Bitcoin’s 2023 performance, boasting a 75% return in the past 12 months, outperforming popular investments like stocks. In his comments, he urged those feeling anxious to gain perspective and appreciate the overall positive performance of Bitcoin in the broader financial landscape.