In a sudden twist of fate, Bitcoin’s value plummeted from $70,820 to $65,000 in just a few hours, marking a significant 5.8% decrease. This abrupt drop sent shockwaves through the cryptocurrency market, resulting in a staggering $936.31 million loss within a single day.
Amidst this chaotic period, Bitcoin spot ETFs drew attention, experiencing substantial withdrawals totaling $55.07 million. Notably, the Grayscale ETF GBTC stood out, facing a concerning single-day net outflow of $166 million, worsening the day’s volatility.
According to SoSoValue’s data analysis, Bitcoin spot ETFs collectively saw a significant net outflow, signaling a significant shift in investment strategies within the cryptocurrency market.
Leading the downturn was Grayscale’s Bitcoin Trust (GBTC), witnessing a staggering single-day net outflow of $166 million. GBTC, a trusted investment avenue for institutions and accredited investors seeking Bitcoin exposure, felt the impact of shifting investor sentiments.
IBIT’s Rise
In contrast, BlackRock’s ETF (IBIT) emerged as an unexpected anomaly, reporting a single-day net inflow of approximately $111 million. This unexpected surge in funds into IBIT amidst market turmoil hints at differing investor strategies.
Also Read: Rich Dad Poor Dad Author Rober Kiyosaki Refuses Investment in Bitcoin ETFs; Here’s Why
The recent downturn led to substantial losses for traders using borrowed funds for cryptocurrency investments. Around $936.35 million was lost in this manner, with a significant $823.97 million coming from traders speculating on price increases. Meanwhile, in the past 24 hours, traders predicting a Bitcoin price drop faced liquidations totaling $112.23 million.
In a significant development, trader Jelle shed light on an impending event concerning Bitcoin’s Pi Cycle Top indicator. Renowned for its accuracy in observing Bitcoin’s bull markets, the Pi Cycle Top consists of two moving averages and has a history of signaling major price peaks for Bitcoin.
Jelle highlights that Bitcoin’s current price is consolidating below the indicator’s longer-term trendline, specifically the 2X multiple of the 350-day moving average. According to on-chain analytics firm Glassnode, this moving average currently stands at $76,000, suggesting that breaching this level could signal a significant shift in Bitcoin’s trajectory.
Market Analysis
As of the latest update, Bitcoin is trading at $67,515, reflecting a slight dip in price alongside a decrease in market capitalization to $48.223 billion.
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Where do you see Bitcoin headed next?
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