Aggregate network fees for Bitcoin (BTC) and Ethereum (ETH) are falling as a result of decreasing volatility. Exchanges continue to receive Bitcoins (BTC), while Ethereum (ETH) reserves have begun to depart from CEXes. Could this be the end of the crypto correction?
Bitcoin (BTC) price tanks on GBTC FUD and institutions taking profit, IntoTheBlock says
The biggest cryptocurrency, Bitcoin (BTC), is experiencing a price correction due to false information on Grayscale’s large-scale sales and profit-taking, which was started by major players. Top research platform IntoTheBlock made these claims in a recent on-chain insights study.
https://x.com/intotheblock/status/1751153283043819704?s=20
IntoTheBlock verified a $4.3 billion withdrawal from Grayscale Bitcoin Trust (GBTC) using its tracking systems. Technically, Grayscale’s GBTC was transformed into an ETF after it had been trading lower than the company’s holdings in Bitcoin (BTC) for two years. Massive withdrawals resulted from this, which helped send the price of bitcoin down.
According to research, addresses with more than 1,000 Bitcoin apiece are making large purchases. Throughout 2023, they were growing their possessions, but in January, this process quickened.
Large hedge funds made the decision to take gains at the same time, which is another significant negative price driver. In Q4, 2023, their actions drove the price to all-time highs in the area, but as of right now, things are the opposite:
We saw the futures premium swiftly changing into a discount as the ETF approval window started, indicating that businesses started to take gains.
As of publication time, Bitcoin (BTC) is trading at $41,715; during the past 24 hours, the largest cryptocurrency has gained about 4% in value.
BTC price’s negative catalysts losing steam?
Nonetheless, some good news regarding Bitcoin (BTC) has emerged in recent days. According to IntoTheBlock, in the past two days, GBTC outflows have also decreased.
Furthermore, China’s central bank declared that it was prepared to provide $140 billion to the country’s financial system, which might serve as yet another impetus for the rise in cryptocurrency capitalization.
Ilan Solot of Marex Solutions, a digital assets specialist, stated that “the worst was over” for cryptocurrencies as the pessimistic narrative around Bitcoin (BTC) failed to drive the price down, as reported by U.Today yesterday.
