After the approval of Bitcoin Spot ETF, the BTC price has not increased as expected. Instead, there has been an increase in selling pressure, leading to a significant drop in price.
Bitcoin's price has been experiencing a significant drop due to selling pressure from the Bitcoin miners and Grayscale actions. Miners are selling their holdings due to a massive correction in BTC's price, which in turn is causing a drop in the coin's price. This selling pressure has reduced their profits, and it could lead to another sell-off, further affecting BTC's price.
On Thursday (18/01), Grayscale, a company that invests in cryptocurrencies, sold over $400 million worth of bitcoin to Coinbase Prime, a digital asset exchange. Bloomberg analyst Eric Balchunas, pointed out on his Twitter account that the value of GBTC shares went down by 0.9% compared to the net asset value, which could be due to the selling pressure caused by this transaction.
BTC is experiencing a bearish trend following the break of a crucial trendline. Despite continuous efforts, BTC is struggling to surpass the $40,000 support level. If this support is breached, there's a potential for further decline, with possible trading levels reaching as low as $38,000 or even $35,000. Traders and investors should closely monitor the situation, considering the significance of the 40k support and the potential impact on BTC's value.
The Ethereum (ETH) market is witnessing a downturn as it approaches the $2,400 level. Notably, ETH and BTC have resumed their correlation after a brief decoupling observed last week. The current sentiment on ETH leans slightly towards the bearish side. Market participants should be attentive to the evolving relationship between ETH and BTC.
This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.