CryptoQuant founder and CEO Ki Young Ju takes center stage with insights amid Bitcoin price’s recent dip, which has left the global investors seeking for potential answers. Meanwhile, the crypto market has been highly volatile since the launch of Spot Bitcoin ETFs this month, with Grayscale’s GBTC witnessing massive outflows. While many analysts have blamed the GBTC selloff behind the recent slump in Bitcoin price, Ki Young Ju suggested otherwise.
CryptoQuant CEO Decodes Reasons Behind Bitcoin Price Slump
Amid the turbulent scenario in the crypto market, CryptoQuant’s Ki Young Ju advises investors to mirror institutional strategies, emphasizing that BTC falls not due to GBTC but derivative market selling. Active OTC markets, according to Ju, show no price impact, suggesting that re-accumulation occurs when on-chain OTC and spot ETF activities decrease – marking the start of a bullish trend.
Simultaneously, crypto market expert Fred Krueger dismisses concerns about GBTC sales, highlighting the real key performance indicator (KPI) as the influx of BTC into the new nine ETFs. In his view, worrying about GBTC is akin to fretting over whales selling BTC, and long-term gains are projected for giants like BlackRock, Fidelity, and Bitwise.
On the other hand, echoing positivity, Samson Mow assures that Bitcoin’s demand from various sources including individuals, corporations, nation-states, and ETFs, will outpace any selling pressure. Advising rationality over emotional reactions, Mow urges stakeholders to focus on the mathematics behind market dynamics.
Also Read: Top Crypto Gainers & Losers For January 24, 2024
Analyzing Grayscale’s Role and Market Fallout
Despite Grayscale’s significant role in the crypto space, its recent struggles have impacted the market. FTX’s $1 billion GBTC selloff, driven by bankruptcy concerns, has cast shadows on market stability.
Meanwhile, the SEC’s approval of U.S. Spot ETFs sparked momentary optimism, but Grayscale’s lagging trading volume compared to competitors like BlackRock and massive GBTC outflows have intensified market pressures. While some critics label Grayscale’s GBTC as a “gigantic wrecking ball of toxic waste,” the crypto community grapples with the aftermath of this market heavyweight’s troubles.
The SEC’s nod to eleven spot Bitcoin ETFs initially uplifted spirits, but the road ahead remains uncertain as the industry navigates through these challenges.
However, the Bitcoin price has erased some of its previous losses on January 24, as the investors seem to be regaining confidence in the market. As of writing, the Bitcoin price traded at $40,000.06, marking a surge of 2.55% from yesterday. Meanwhile, over the last 24 hours, the flagship crypto has touched a high of $40,218.02 and a low of $39,105.51.
Also Read: XRP Whale Offloads 29.5 Mln Tokens, Fall to $0.50 Imminent?
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