BTC falls below $39,000, or 605 million in rupiah, for the first time since December 3, 2023, due to the sale of BTC linked to GBTC on Coinbase, which continues to influence investor sentiment across the crypto market. Come on, let's look at the explanation 

BTC Drops Due to GBTC Selling

The price of Bitcoin (BTC) experienced a sharp decline from a price of $41,553 on January 22, down more than 4.3% in the last 24 hours and 9.3% over the last 30 days, reaching a six-week low of $38,550, or 604 million in rupiah, according to data from Bittime.

BTC/USDT Price 1-day chart

Source: BTC/USDT Bittime.com

This drop in Bitcoin prices comes as traders were shocked by the unexpected outcome of the US Securities and Exchange Commission's approval of 11 spot Bitcoin ETF products, with GBTC selling blamed for the market crash.

Impact of GBTC Selling on Bitcoin Price

Grayscale deposited more than $600 million worth of BTC on Coinbase on January 22, raising the total to more than $2 billion. Meanwhile, bankruptcy managers at FTX sold their entire 22 million GBTC stake, equivalent to almost $1 billion, adding pressure to the price.

Since the conversion of $GBTC to #BitcoinETF, investors have sold over $2 billion. FTX's bankruptcy liquidation has led to $BTC sales of over $1 billion. The GBTC-NAV discount arbitrage trade led to the sale of over $1 Billion to lock in profits. All of these sales occurred in a relatively short period of time.

Tweet by CJK (@CJKonstantinos) January 22, 2024

The last time Bitcoin traded below $40,000 was nearly a month and a half ago, on December 3, 2023, when it hit a low of $39,293, before rising towards a 20-month peak around $49,000 on January 11.

Trader and analyst Seth highlights BTC trading below $40,000, with hopes of seeing the premier cryptocurrency close daily above $40,000!

Tweet by Seth (@seth_fin) Jan 22, 2024

Data from Coinglass shows liquidations of over $56 million in long Bitcoin positions on the day, with the number continuing to increase as this article was written. Cross-crypto-long liquidations totaled over $208.7 million. At the time of writing, the BTC price has recovered slightly and is now trading at $39,745.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.