The massive selling pressure of $GBTC has recently pushed down the bitcoin price below $40k after the US SEC approved spot BTC ETF applications of 11 financial giants including Blackrock, Fidelity, Ark invests, Grayscale, Franklin Templeton, Invesco and others etc. Due to this, such a large scale of selling pressure magnitude no doubt has affected Bitcoin’s price, and that seems to be a plausible explanation for why Bitcoin’s price has declined as of today (down by 5% in the last 24 hours).
While Grayscale’s $GBTC continues to sell in the spot market, other Spot ETF applicants look to be purchasing BTC continuously, as there is an impressive demand for these ETFs from global young investors. Hence, the firms including Blackrock and Fidelity have been continuously purchasing BTC for their own ETF funds.
Despite the bullish sentiments from the approval of BTC spot ETFs, BTC hasn't managed to perform well as of now, due to continuous heavy selling pressure. It has suggested that the approval of Spot Bitcoin ETFs appears to be a classic case of a “buy the rumor, sell the news event.” Although the upcoming months will be interesting to see how BTC reacts due to major factors including anticipation of Fed rate cuts announcement in March, BTC halving in April-May and US presidential elections etc.
At the time of writing, Bitcoin’s price stands at $38,700 with a market capitalization of $760 Billion and down by 9.65% over the past week.