The leading cryptocurrency, Bitcoin, experienced a significant drop after marking a local peak, as anticipated last week. The duration of this correction is uncertain, but it’s a reminder that constant rises in the crypto market are unrealistic. Investors have been dealing with price corrections due to ongoing profit-taking.
Bitcoin’s price fell to a daily low of $38,618, a substantial decline from the peak by about $10,500. The excitement over the ETF approval seems to have largely dissipated. Prior to the Binance hearing, Arkham Intelligence identified the wallet addresses of spot Bitcoin ETF issuers, highlighting the concerning scale of GBTC redemptions.
Grayscale is witnessing significant withdrawals, which has been a persistent factor in investors’ selling motivation. Arkham Intelligence’s revelation of ETF issuers’ wallet addresses has provided investors with clearer insights into market movements. BlackRock’s iShares Bitcoin Trust (IBIT) holds approximately $1.3 billion worth of 33,430 BTC, while GBTC, the largest spot Bitcoin ETF, holds 558,280 BTC, down from over 600,000 BTC before approval.
The U.S. House Financial Services Committee continues to pressure Meta, given that five cryptocurrency and blockchain-related trademark applications remain active since 2022. Despite suspending NFT support, Meta’s Web3 vision necessitates its engagement with crypto. Committee member Maxine Waters expressed concerns over Meta’s ongoing applications in a letter to Mark Zuckerberg and Javier Olivan.
Alameda Research withdrew its lawsuit against Grayscale, the largest crypto fund issuer, which profited significantly from selling $1 billion worth of GBTC ETF. The outcome of the Binance hearing is pending, but investors should watch for the SEC’s stance on altcoins as securities. Judges may push the SEC to clarify how altcoins are securities, potentially easing the way for altcoin investors.
