Bitcoin’s price has experienced a significant drop, falling over 20% since reaching $49,000 on January 11, with a 5% decrease within a single day. Analysts predict a potential decline to $34,000, suggesting further losses could reach up to 30%.
CoinGlass, an on-chain crypto data analysis platform, published a heatmap indicating a substantial liquidation at the $34,000 level, confirming analysts’ expectations. The platform also reported $225 million worth of liquidations in the last 24 hours, primarily from Bitcoin and Ethereum long positions.
CoinGlass noted that Grayscale’s Bitcoin Trust (GBTC), despite being converted into a spot Bitcoin ETF, still holds over 550,000 BTC, indicating ongoing exits from GBTC.
Data compiled by user CC15Capital shows that since the launch of spot Bitcoin ETFs, fund issuers have purchased a net total of 27,717 BTC, amounting to approximately $1.1 billion at current prices, despite the outflows from GBTC. Tether and VanEck strategist Gabor Gurbacs stated that the introduction of spot Bitcoin ETFs has mitigated the impact of sales in FTX and GBTC.
Santiment, a leading crypto data provider, observed a significant drop in discussions about BTC and ETH by 35% and 21%, respectively, compared to the week before the spot ETF approval, hinting at a potential price bounce after the current market downturn.