Contrary to expectations of a rise following the SEC’s approval of Spot Bitcoin ETFs, Bitcoin’s price plummeted by over 15%, dropping from $49,000 to $40,297, accompanied by a significant decrease in trading volumes. Reports suggest that Grayscale Bitcoin Trust (GBTC) sold a large number of Bitcoin assets, but CryptoQuant analysts believe the situation may not be as it seems.
Julio Moreno of CryptoQuant disputes claims that the price correction is due to GBTC-related sales. He points out that combined net purchases from BlackRock, Fidelity, Bitwise, and other approved institutions amount to approximately 72,000 BTC, indicating an actual increase in market inflow.
The main reasons for Bitcoin’s decline include market sentiment and news-driven selling activities. Short-term traders and large Bitcoin holders continue to sell, reflecting a risk-averse attitude. CryptoQuant suggests that unrealized profit margins have not dropped sufficiently to exhaust sellers.
CredibleCrypto’s analysis highlights a net positive flow of over 5,000 Bitcoins since the ETF-related BTC influx, predicting a significant impact, potentially ten times that of the halving event.
CryptoQuant CEO Ki Young Ju warns that the recent 15% correction may continue and deepen, as Bitcoin has not been fully distributed to individual users yet. Despite this, he maintains a positive long-term outlook, expecting the bull market cycle to persist until Bitcoin is fully disseminated to individual users.
