Swan Bitcoin: FTX Dumps $1 Billion as Bitcoin Price Dips Below 40k
After peaking near $49,000 on the news that 11 bitcoin ETFs would start trading, bitcoin’s price has dropped. In fact, it’s technically in a bear market, as the price has fallen more than 20 percent from that recent peak.
It’s clear now that prices have followed a “buy the rumor, sell the news” approach to a bitcoin ETF in recent months. Following the acceptance and trading of multiple bitcoin ETFs, the speculation that drove prices higher simply gave away.
But there are some other short-term factors at play. The Grayscale Bitcoin ETF (GBTC) was structured as a trust before the ETF approval. As a result, it carried higher fees, and still does.
The trust also traded at a discount to the value of its BTC. That disappeared following bitcoin’s bull run higher. The incentives rose to sell the ETF and buy one with lower fees.
It’s also a fund that was holding over $1 billion in funds for FTX. Those funds have now been sold too.
With bitcoin now less than 100 days away from its next halving, where new supply will be cut in half, the recent selloff looks like a buying opportunity for those interested in bitcoin.
That could include holdings in one of the new ETFs, or the cryptocurrency itself.
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