Bitcoin witnessed a notable drop today, hitting an intraday low of $39,494.65, leading to a decrease in its market capitalization to $784.8 billion. The 24-hour trading volume surged to $30 billion.
In the latest update, Bitcoin has slightly recovered, trading at approximately $40,032.31. However, the 24-hour range reflects a turbulent period, oscillating between $39,494.65 and $41,269.88.
Bitcoin’s Value Decline: ETF Outflows as a Key Factor
The recent decline in Bitcoin’s value is primarily linked to significant outflows from Bitcoin exchange-traded funds (ETFs). A notable instance is the Grayscale Bitcoin Trust (GBTC), experiencing an unprecedented $640 million exit in a single day, marking its largest outflow ever. The cumulative withdrawals have now reached a concerning $3.45 billion.
James Seyffart, a prominent NFT analyst, highlighted this trend on social media, emphasizing the accelerating pace of these substantial outflows.
Analyst Holger Zschaepitz pointed to the waning enthusiasm for Bitcoin ETFs, coinciding with a decline in the correlation between Bitcoin and technology stocks. The correlation has dropped to a low of 0.3 in the past week, indicating a shift in market dynamics and investor sentiment.
Bitcoin Bearish Sentiment: Critics Express Concerns
Peter Schiff’s Pessimistic Stance: The recent bearish sentiment surrounding Bitcoin has prompted critical remarks from prominent skeptics, including Peter Schiff. Known for his skepticism toward Bitcoin, Schiff expressed his bearish views, particularly focusing on the ProShares Bitcoin Strategy ETF. This ETF, tracking Bitcoin futures, has witnessed a staggering decline of over 50% since its launch in October 2021. Schiff anticipates a similar fate for other ETFs in the market.
Jim Cramer’s Brief Assessment: Adding to the bearish discourse, Jim Cramer, a notable figure in the financial world, succinctly summarized the situation with a post stating, “Bitcoin=tough own.” This statement follows Cramer’s earlier prediction that the flagship cryptocurrency would face challenges in finding stable ground, reinforcing the prevailing concerns in the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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