Bitcoin

Grayscale Bitcoin Trust

James

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Bitcoin has experienced a significant drop earlier today, <a href="https://www.coingecko.com/en/coins/bitcoin" rel="noopener noreferrer nofollow">plummeting</a> to an intraday low of $39,494.65.&nbsp;
This latest decline has brought its market capitalization down to $784.8 billion with a 24-hour trading volume reaching $30 billion. &nbsp;
As of the latest update, Bitcoin has slightly recovered, trading around $40,032.31, but the 24-hour range indicates a tumultuous period for the cryptocurrency, having oscillated between $39,494.65 and $41,269.88.
<h2 id="understanding-the-selloff">Understanding the selloff</h2>
The downward trend in Bitcoin's value can be largely attributed to significant outflows from Bitcoin exchange-traded funds (ETFs).&nbsp;
Notably, the Grayscale Bitcoin Trust (GBTC) witnessed a staggering $640 million exit in just one day, marking the largest outflow it has ever experienced. The total amount withdrawn so far has reached a concerning $3.45 billion.&nbsp;
James Seyffart, the leading NFT analyst, <a href="https://twitter.com/JSeyff/status/1749634659145630055" rel="noopener noreferrer nofollow">pointed</a> to this trend in his social media post, underscoring the increasing pace of these outflows.&nbsp;
Additionally, analyst Holger Zschaepitz stressed diminishing enthusiasm for Bitcoin ETFs, which coincides with a drop in the correlation between Bitcoin and technology stocks, currently standing at a low of 0.3 in the past week.
<h2 id="bearish-sentiment-from-market-analysts">Bearish sentiment from market analysts&nbsp;</h2>
The recent bearish sentiment surrounding Bitcoin has fueled doom-laden posts from prominent naysayers. &nbsp;
Peter Schiff, a well-known critic of Bitcoin, took to X to express his bearishness, particularly focusing on the ProShares Bitcoin Strategy ETF. This ETF, which tracks Bitcoin futures, has seen a decline of over 50% in just over two years since its launch in October 2021. Schiff sees other ETFs witnessing the same fate.&nbsp;
Jim Cramer, another influential voice in the financial world, succinctly summed up the situation with a post stating, "Bitcoin=tough own," after previously predicting that the flagship cryptocurrency&nbsp;would struggle to find a footing. &nbsp;&nbsp;

Key Reason Behind Bitcoin (BTC) Price Crash

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