Bitcoin Falls Below ,000 Amid GBTC-Linked Selling and SEC ETF Approval Backlash

Bitcoin’s price dropped below $40,000 for the first time since December 3, 2023, as the Grayscale Bitcoin Trust (GBTC)-linked selling of BTC on Coinbase continued, impacting investor sentiment in the crypto market. Bitcoin experienced a rapid decline from $41,553 on January 22, falling over 4.3% in the last 24 hours and 9.3% over the past 30 days, reaching a six-week low of $39,450, according to CoinMarketCap. The unexpected approval of 11 spot Bitcoin ETF products by the U.S. Securities and Exchange Commission (SEC) contributed to market volatility, with GBTC selling being blamed for the downturn. Grayscale deposited over $600 million worth of BTC on Coinbase, bringing the total to over $2 billion, while FTX’s bankruptcy managers sold their entire 22 million-shareholding of GBTC, equivalent to nearly $1 billion. Traders and analysts expressed concern about Bitcoin trading below $40,000, emphasizing the importance of a “daily close above 40K” to assess the market’s resilience. The last time Bitcoin traded below $40,000 was on December 3, 2023, before reaching a 20-month high of around $49,000 on January 11. (Source: Cointelegraph)