Bitcoin Struggles to Hold Major Support Amid Market Selloff

By: Eliza Bennet

Bitcoin and other major cryptocurrencies, including Solana, Avalanche, and Cardano, are facing a harsh selloff, resulting in Bitcoin's price falling to $40K. This comes in the wake of recent Spot Bitcoin ETF approvals, an event originally anticipated to boost Bitcoin's price.(source)

A sharp outflow of $2.2 billion from Grayscale's GBTC following its conversion to a Spot Bitcoin ETF could be triggering the market dip. Insiders suggest that the large-scale selling pressure induced by the Spot ETF conversion is outweighing any initial demand stimulated by ETF approval. Combined with ordinary market volatility, this has fuelled a notable price drop.(source)

The recent price signals are concerning, but there is some optimism. BlackRock's iShares Bitcoin Trust (IBIT) has been rapidly amassing spot Bitcoin, indicating a counter-trend of strong buying pressure. This influx of demand could eventually offset the selling pressure, potentially stimulating a price recovery in the medium to long term.(source)