Following the recent approval of the ETF, Bitcoin has experienced continuous selling pressure, resulting in a drop in price to below $41,000. This has caused heightened investor concern as the weekly losses for Bitcoin now exceed 10%.
Notably, cryptocurrency analyst Scott Melker, also known as The Wolf of Street, has attributed the recent decline in Bitcoin to Grayscale. Melker has pointed out a significant outflow from Grayscale Bitcoin Trust (GBTC) shares after the ETF approval, leading to the liquidation of a substantial amount of Bitcoin equivalent to GBTC.
It’s important to note that Grayscale’s actions are not malicious, but rather a result of the mechanics of an ETF. They are not actively selling Bitcoin, but are forced to sell an equivalent amount in response to the selling of GBTC shares.
As of the time of writing, Bitcoin is trading at $41,455. It’s essential for investors to stay informed and exercise caution in light of these market developments.
Additionally, it’s crucial for investors to do a thorough research and consult with financial experts before making any investment decisions in the crypto market. Always remember that this is not investment advice.
