Bitcoin faced a significant downturn, dropping below $40K for the first time since December 4th, causing widespread concern across the cryptocurrency market.
Monday witnessed notable setbacks for various digital assets, with Bitcoin and Ethereum experiencing a 35% and 21% reduction in discussions compared to the previous ETF approval week.
📉 #Bitcoin briefly fell below $40K for the first time since December 4th. Monday has been a bloodbath for most of the #crypto sector. Notably, there is 35% less discussion toward $BTC and 21% less toward $ETH compared to the prior #ETF approval week. #FUD is
(Cont) 👇 pic.twitter.com/iievb8mbHJ
— Santiment (@santimentfeed) January 22, 2024
Market data reveals the presence of short-term panic orders, indicating an increased bearish sentiment. Despite the growing FUD (Fear, Uncertainty, Doubt), the market maintains a relatively balanced position between long and short positions, setting the stage for an intense battle.
Bitcoin ETF Issuers Acquires More Bitcoin Despite The Price Drop
Bitcoin ETF issuers, excluding Grayscale, collectively invested a staggering $3.63 billion, acquiring over 86,320 BTC at an average price of $42,000. Notable contributors include iShares Bitcoin Trust (BlackRock) receiving 4,808 BTC from Coinbase Prime, currently holding $1.33 billion, and Fidelity Bitcoin ETF accumulating 5,312 BTC, now totaling $1.22 billion.
Bitwise Bitcoin ETF secured 1,352 BTC from Flow Traders, reaching a total of $55.71 million and holding 10,152 BTC valued at $412.71 million.Â
Meanwhile, Grayscale deposited 15,308 BTC ($623.8 million) to Coinbase Prime, accumulating a total of 63,991 BTC ($2.68 billion) since the ETF approval.
Grayscale deposited 15,308 $BTC($623.8M) to #CoinbasePrime again 50 mins ago.
Since the ETF was passed, #Grayscale has deposited 63,991 $BTC($2.68B) to #CoinbasePrime during the opening hours of U.S. stocks (14:30 UTC).
According to Arkham, #Grayscale currently holds 549,116… pic.twitter.com/i1LtKryu6W
— Lookonchain (@lookonchain) January 22, 2024
Despite the challenges, industry analysts anticipate favorable prospects for price rebounds as the FUD peaks. The cryptocurrency market remains dynamic, with investors closely monitoring developments amid ongoing market fluctuations.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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