Bitcoin dropped to 39,450 USD after revealing that FTX sold 1 billion USD of GBTC
The world's largest cryptocurrency Bitcoin lost the $40,000 milestone as selling pressure from Grayscale's GBTC continued unchanged.
Bitcoin dropped to 39,450 USD after revealing that FTX sold 1 billion USD of GBTC shares. Photo: Bloomberg
Bitcoin (BTC) price in the early morning of January 23, 2024 dropped to 39,450 USD, the lowest since early December. Since the peak of 48,969 USD set on January 11, BTC has dropped nearly 20%. .
The cryptocurrency market in the past 12 hours recorded the liquidation of derivative orders reaching more than 140 million USD, with long positions accounting for 82.7%.
1h chart of the BTC/USDT pair on Binance at 07:55 AM on January 23, 2024
Reasons for regression,as explained by Coin68, comes from conversion pressureGBTC shares, forcing the Grayscale fund to sell its Bitcoin holdings to get money to pay investors.
On the evening of January 22, Grayscale transferred 19,260 BTC to Coinbase, equivalent to more than 900 million USD. This is the largest transfer sinceBitcoin spot ETF approved, passed the 12/01 (4,000 BTC - 183 million USD), 16/01 (9,000 BTC - 384 million USD), 17/01 (18,638 BTC - 791 million USD) and January 18 (12,870 BTC - 531 million USD).
A shocking revelation made by CoinDesk is that one of the organizations that sold the most GBTC last week wasbankrupt cryptocurrency exchange FTX.
Specifically, CoinDesk insiders confirmed that FTX has liquidated 22 million GBTC shares since the fund was approved to become a Bitcoin spot ETF, with an estimated value of up to 1 billion USD. This number of shares hasallowed by the courtFTX goes on sale in November 2023.
The news site commented that as the selling pressure from FTX gradually eases, Grayscale may no longer be pressured to sell Bitcoin in large quantities like in recent days. However, this fund currently holds more than 573,000 BTC, worth $22.8 billion.
List of assets held by Grayscale as of the morning of January 23, 2024. Source: Arkham
After the liquidation of GBTC, the sister company to FTX is the fundAlameda Research has also withdrawn its lawsuit against Grayscale.
According to data from Bloomberg , at the end of the January 22 trading session (US time), 11 Bitcoin spot ETFs recorded a trading volume of 2 billion USD, of which Grayscale's GBTC still accounted for more than half with 1 billion USD and The amount of money flowing out of the fund in one day set a new record of more than 640 million USD.
