- Many analysts claim that the cause behind the recent drop in Bitcoin price is the sale of GBTC, but Ki Young Ju suggests otherwise.
- Fred Krueger dismisses concerns about GBTC sales, emphasizing that the real key performance indicator is the flow of BTC to the new nine ETFs.
- Emphasizing rationality over emotional reactions, Mow calls stakeholders to focus on the mathematics of market dynamics.
Ki Young Ju, the founder and CEO of CryptoQuant, states that the decline in Bitcoin price is not due to GBTC: Here are the details!
Why Did Bitcoin Price Drop? Analytical Firm Explains
CryptoQuant founder and CEO Ki Young Ju stands out with insights on the recent decline in Bitcoin price, offering potential answers for global investors seeking explanations. Meanwhile, the crypto market has been highly volatile since the launch of Spot Bitcoin ETFs earlier this month, and Grayscale’s GBTC has experienced significant outflows. While many analysts claim that the sale of GBTC is the cause behind the recent drop in Bitcoin price, Ki Young Ju suggests otherwise.
In this turbulent situation in the crypto market, Ki Young Ju of CryptoQuant advises investors to reflect institutional strategies and emphasizes that the reason for the decline in BTC is not GBTC but rather derivative market sales. According to Ju, active OTC markets do not show a price effect, and when on-chain OTC and spot ETF activities decrease, the accumulation resumes, signaling the beginning of a bullish trend.
At the same time, crypto market expert Fred Krueger dismisses concerns about GBTC sales, highlighting that the real key performance indicator is the flow of BTC to the new nine ETFs. According to him, focusing on GBTC is akin to worrying about whales selling BTC, and long-term gains are expected for giants like BlackRock, Fidelity, and Bitwise.
On the other hand, reflecting a positive tone, Samson Mow asserts that Bitcoin’s demand from various sources, including individuals, companies, nation-states, and ETFs, will surpass any selling pressure. Emphasizing rationality over emotional reactions, Mow calls stakeholders to focus on the mathematics of market dynamics.
Grayscale’s Role and Market Consequences Analysis
Despite Grayscale’s significant role in the crypto space, its recent challenges have impacted the market. The $1 billion GBTC sale conducted by FTX amid bankruptcy concerns cast a shadow over market stability. Meanwhile, short-term optimism brought by SEC approval of U.S. Spot ETFs, along with low trading volume compared to competitors like BlackRock and significant GBTC outflows, increased market pressures.
While some critics label Grayscale’s GBTC as a “giant wrecking ball of toxic waste,” the crypto community is grappling with shocks following the troubles of this market giant. Eleven spot Bitcoin ETFs approved by the SEC initially boosted spirits, but the industry faces uncertainty as it deals with these challenges.
However, Bitcoin price seems to be regaining investor confidence. As of now, Bitcoin is trading at $40,150, representing a 2.55% increase from yesterday. In the last 24 hours, the leading crypto reached a peak of $40,218.02 and a low of $39,105.51.
