Crypto Compact Fire, Will Bitcoin Drop US$ 32,000?
The crypto market fell simultaneously in the last 24 hours amid projections that bitcoin is expected to fall significantly due to selling pressure ahead of the approval of a spot Bitcoin ETF.
Referring to CoinMarketCap on Friday (29/12/2023) at 9:19 WIB, the crypto market collapsed. Bitcoin fell 2.47% to US$42,397.78 and was still down 3.9% on a weekly basis.
Ethereum is in the negative zone of 3.31% in the last 24 hours even though it rose 3.91% in the week.
BNB experienced a depreciation of 2.57% on a daily basis despite flying 17.01% on a weekly basis.
Likewise, Cardano fell 6.74% in the last 24 hours and fell 5.73% weekly.
The CoinDesk Market Index (CMI), which is an index for measuring the market capitalization-weighted performance of the digital asset market, fell 3.46% to 1,811.68. Open interest depreciated 3.38% to US$41.34 billion.
Meanwhile, the fear & greed index is reported by coinmarketcap . com shows the number 71 which shows that the market is in the greed/optimistic phase with the current economic conditions and crypto industry.
Reporting from cointelegraph . com , ARK Invest liquidated all remaining Grayscale Bitcoin Trust (GBTC) holdings worth US$200 million on December 28, 2023.
ARK Invest used half of the money, around US$100 million, from the GBTC sale to invest in Bito's Bitcoin Futures ETF. However, ETF analysts believe that this is a temporary parking spot for investment firms as they seek more liquidity-rich portfolios.
For your information, ARK Invest began selling GBTC shares in October when the Bitcoin price first reached US$34,000; at that time, the investment company sold 100,739 shares of GBTC worth US$2.5 million from the ARK Next Generation internet ETF (ARKW). The company sold another 809,441 GBTC shares on December 19 for US$27.9 million.
In addition to dumping GBTC, ARK Invest also liquidated 148,885 Coinbase shares worth US$27.5 million from the ARK Next Generation internet ETF (ARKW). This latest investment move by the asset management firm comes at an important time when there is intense speculation surrounding the approval of a spot Bitcoin ETF.
Furthermore, reported by newsbtc . com , a recent report from CryptoQuant has sparked discussion, indicating that the approval of a Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) could lead to a significant market event.
The report noted increased selling activity from Bitcoin miners, adding to potential selling pressure on BTC.
According to CryptoQuant analysis, during downturns in bull markets, Bitcoin's value often falls back to levels where short-term investors have historically realized the price.
Taking this into account, the report suggests that in a scenario where "selling on news" occurs, Bitcoin's value would probably see a decline, with a drop to around "US$32,000" likely.