Bitcoin Sudden Decline to Below $63K and Its Market-Wide Impact
The negative shift suggests a weakening demand for Bitcoin in the US, coinciding with slowed inflows into spot ETFs and a record outflow from Grayscale’s ETF.
$63 537
1H
-0.19%$121
24H
-7.17%$4 907
7D
-11.9%$8 574
30D
23.2%$11 977
Bitcoin is the pioneer of the cryptocurrency concept, as it’s the first decentralized digital currency introduced back in 2009. The creator of BTC and underlying blockchain technology is mysterious Satoshi Nakamoto, whose true identity hasn’t been discovered yet, despite quite a lot of people claimed they had created Bitcoin. BTC opened up the new industry of peer-to-peer crypto coins, which has been actively evolving since then.
Bitcoin is built on the distributed ledger technology or blockchain. In other words, each Bitcoin transaction that has ever been made exists on a public ledger accessible to everyone, making transactions hard to reverse and difficult to fake. Managing these transactions and the issuing of Bitcoins is carried out collectively by the network. This is possible due to peer-to-peer (P2P) technology that eliminates the need for a central authority or any intermediaries, like banks.
Bitcoins are elementally made through the process of mining, which is performed by high-powered computers that solve complex computational math problems. In fact, there are only 21 million Bitcoins that can be mined in total. Once miners have unlocked this number of bitcoins, the supply will be exhausted.
The list of BTC use cases is unlimited. It can be used for payment transactions, as a store of value, as collateral, and much more. Bitcoin has a huge lead over the hundreds of other digital currencies, it is revolutionizing and challenging the traditional finance systems.
The negative shift suggests a weakening demand for Bitcoin in the US, coinciding with slowed inflows into spot ETFs and a record outflow from Grayscale’s ETF.
Grayscale’s Sonnenshein justified high fees due to GBTC’s liquidity and track record. He explained that other ETFs may offer lower fees because they lack a proven track record, and issuers are enticing investors with fee incentives.
Japan’s Government Pension Investment Fund (GPIF) seeks to diversify its investment portfolio to deal with major changes in the global economy and society.
The decline in Bitcoin ETF inflows and the record outflow from GBTC suggest a reevaluation of Bitcoin investment strategies among institutional and retail investors.
Big market players continue to remain bullish on Bitcoin, while the world’s largest crypto faces strong selling pressure a day before the FOMC meeting.