2024 is proving to be an interesting year for investors. Bitcoin Because earlier this month witnessed one of the most exciting financial products in history, as the Securities and Exchange Commission (SEC) approved a Bitcoin ETF to trade in the US market.
On the other hand, Bitcoin price rose to a new multi-year high, reaching $49,102, and then the market fell 18% over the weekend. It reached a new year's low of $40,236.
Like any other important event, Bitcoin holders are open to debate whether this event will affect the price or not.
In this regard, Julio Moreno, Head of Research at CryptoQuant, shot down conflicting reports by saying that the decline in Bitcoin price was due to Grayscale's GBTC selling Bitcoin.
Before the switch from funds to ETFs, the Grayscale Bitcoin Trust (GBC) was one of the only options for US stock traders to gain exposure and invest in Bitcoin price fluctuations without actually buying Bitcoin.
Moreno confirmed that while GBTC sold approximately 60,000 BTC, other Bitcoin ETFs collectively bought approximately 72,000 BTC, offsetting Grayscale's BTC sales from GBTC to some extent.
He also pointed to Bitcoin price fluctuations due to selling by Bitcoin holders (short-term traders and bookmakers) who made profits after Bitcoin's rally last year. She noted that the ETF approval may just be a “sell on the news” event.
source: Yo today
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