Bitcoin fell below 40,000 this morning, is FTX dumping GBTC to blame?

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Bitcoin Breaks Below $40,000 Mark, FTX Dumping GBTC to Blame?

Bitcoin has been on a downward trend recently, with Arthur Hayes predicting last night that Bitcoin would fall below 40K. He has purchased Bitcoin put options with a strike price of $35,000 expiring on March 29 as a hedge. This also indicates that Hayes believes the price of Bitcoin will be below 35K by the end of March.

Arthur Hayes: Cryptocurrency and market forecasts for March 2024 suggest a 30-40% correction for Bitcoin

The recent selling pressure on Bitcoin may also be related to Grayscale GBTC. GBTC has seen outflows of $2.8 billion in the past six days.

According to CoinDesk, citing "private data" and anonymous sources, since Grayscale's GTBC fund successfully transitioned to a Bitcoin spot ETF, cryptocurrency exchange FTX has sold nearly $1 billion worth of the company's shares. However, based on CoinDesk's data, these 22 million shares of GBTC are almost all of FTX's holdings!

Continued selling pressure on GBTC, Bitcoin's downward trend may not reverse until late March

Bitcoin dropped to a price of 39,431 this morning and has not yet surpassed the 40K mark again. Yesterday, Matrixport analyst Markus Thielen stated that Q1 will be a challenging quarter, with Bitcoin's greed and fear index not yet reaching contrarian buying levels, and BTC may retrace to 38K.

Matrixport: Buy Bitcoin and wait, greed index has not reached a low point yet

Statistics on the Price Changes of the Top 10 Cryptocurrencies by Market Capitalization

Except for TRX, the top 10 cryptocurrencies by market capitalization are all experiencing significant declines.

BNB has benefited from the recent LaunchPool craze, holding steady above the $300 mark and reclaiming the third spot from SOL.

Binance's new coin mining activities continue! AltLayer ALT will launch on 1/19

DOGE surged briefly due to the expectation of Twitter's XPayments launch, pushing it past AVAX to the seventh spot in market share.

Twitter accelerates financial payments: Launches official XPayments account, DOGE surges