The cryptocurrency landscape witnessed a significant shift recently, with Bitcoin (BTC), the undisputed king of the market, experiencing a sharp decline that pushed its price below $40,000 for the first time since December 2023.
This drop sparked widespread discussion, with market players attempting to pinpoint the key factors behind the bearish trend and crypto doubters reiterating their stance.
Read Also: Bitcoin (BTC) Surges To Reach Highest Level Since April 2022. Here’s why
Beyond the ETF Frenzy
According to a report from Gadget360, Shivam Thakral, the CEO of BuyUcoin described the decline as a “healthy pullback after a massive bull run,” referring to the market’s response to the Bitcoin ETF approval earlier this month. He believes Bitcoin’s price will stabilize with growing AUMs of the ETFs, which could cause mass adoption.
However, closer examination reveals a more nuanced picture. Several other contributing elements likely played a role in this price crash.
Grayscale’s Maneuvers
Grayscale, the world’s largest crypto asset manager, was one of the first movers in the ETF space. It recently received regulatory approval to launch its own Bitcoin Spot ETF product. However, its recent actions have fueled speculation and potentially impacted market sentiment. These transactions were shared by Lookonchain (@lookonchain) on X, and while the move ultimately appeared to be for safekeeping purposes, the initial uncertainty may have contributed to the price drop.
Mt. Gox Looming Large
Adding another layer of complexity is the ongoing saga of Mt. Gox, the infamous cryptocurrency exchange that collapsed in 2014. Recent developments suggest that the exchange could soon repay its creditors in Bitcoin and Bitcoin Cash (BCH).
While this news is positive, the potential release of a significant amount of BTC (estimates range from 142,000 to 200,000) has raised concerns about a potential increase in supply and its impact on the overall price.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Former White House Communications Director’s Bullish Post Excites Bitcoin Enthusiasts
A New Bearish Wave
This drop has invigorated the crypto doubters. The crypto space is not without its vocal critics, and prominent figures like Peter Schiff have leveraged the recent dip to reiterate their negative predictions.
Schiff, a staunch Bitcoin skeptic, highlighted the performance of the ProShares Bitcoin Strategy ETF (BITO), a futures-based ETF launched in 2021 that has witnessed a significant decline from its opening price. He suggests that the newly approved spot ETFs could face an even harsher fate, potentially influencing investor confidence and contributing to the selling pressure.
What’s Next for Bitcoin (BTC)?
Bitcoin’s post-ETF performance appears to have been overshadowed by multiple events. However, the Bitcoin halving is still on the horizon, and the anticipation and excitement for that event could pull Bitcoin back up very soon.
Follow us on Twitter, Facebook, Telegram, and Google News
