Bitcoin Breaks $39K Barrier; Altcoins Take Severe Hit
By Laxmikant Khanvilkar
Virtual digital assets (VDA) continue to witness unpleasant price swings after the launch of the spot Bitcoin ETFs launch in the United States and it is reasonable to say that the approval by the SEC had very negative short-term repercussions for cryptocurrencies and the sector as a whole.
Bitcoin (BTC) price has breached the barrier of $39,000 for the first time in last two months, the analysts have observed that “Sell the news” phenomenon has played out as expected.
Hence, the largest cryptocurrency by market capitalisation has lost nearly 20% since the launch of spot BTC ETFs. In the last 24-hours bitcoin fell 5% to $38,700 before recovering slightly. It is currently trading 0.7% higher at $40,041.
Part of the recent selling pressure on bitcoin has been traced back to sales from the FTX bankruptcy estate, which has dumped some 22 million shares of Grayscale’s GBTC in the past few weeks, as CoinDesk reported.
Bitcoin price trend continue to drive broader markets.
Ethereum (ETH), the second largest cryptocurrency, slipped toward $2,200 level. It was recently changing hands at $2,238 losing 3.9%.
Other large altcoins such as BNB, Caradano, XRP, Dogecoin too suffered losses.
The global crypto market cap decreased 1% to $1.55 trillion in the last 24 hours. On the other hand, the total crypto market volume jumped 3.3% to $72.2 billion. Total volume in DeFi is currently $6.1 billion, and all stablecoins are $65.8 billion, representing 8.4% and 91.2%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 50-4%, showing an increase of 0.6% over the day.
The IC15 index, the barometer of the top fifteen tokens, eased 0.8% to 51,511.
Meanwhile, industry experts are debating the possible takeover of bitcoin investing firm Grayscale, which was recently permitted to convert its Grayscale Bitcoin Trust (GBTC) into an ETF. Nine other asset management firms have also won the ability to create their own bitcoin ETFs. With investors moving out of GBTC and parking their funds with new comers, the urge for Grayscale takeover is quite evident. We will have to wait and follow this interesting development that has potential to shape VDA space.
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