The Bitcoin price has passed $60,000 and has come extremely close to the all-time high by reaching $64,000. Now there appears to be resistance and an explanation for this can be found in the figures of the Spot Bitcoin ETFs.
What is going on? Why did Bitcoin run into resistance yesterday?
Grayscale ETF sells $599 million worth of Bitcoin
You have undoubtedly noticed that the Grayscale Bitcoin Trust (GBTC), the fund that has been on the market since 2013, has been putting downward pressure on the Bitcoin price since its transformation into an ETF in January.
While the rest of the Spot Bitcoin ETFs generate huge inflows, Grayscale has been a net seller from day one.
The reason why Bitcoin had some difficulty yesterday in finally settling in the zone from 63,000 to 64,000 seems to lie in the last red candlestick. Yesterday, GBTC sold another $599 million worth of Bitcoin almost out of nowhere.
In itself, this is not bad at a time when there is a lot of bullish momentum from the other Spot Bitcoin ETFs. The sooner the Grayscale ETF deflates, the sooner we can look further up.
Huge volumes for Spot Bitcoin ETFs
The trading day of February 29 was certainly gigantic in terms of trading volume for the Spot Bitcoin ETFs. There were only two ETFs on the American market yesterday that scored a higher trading volume than the Spot Bitcoin ETF from the major BlackRock.
Only two S&P 500-related ETFs managed to score better than BlackRock’s Spot Bitcoin ETF. Furthermore, it is clear that volumes are now really starting to pick up.
Could that be FOMO in the run-up to the halving? That’s a possibility. On the other hand, Bitcoin is already heading towards its all-time high, which in itself could be enough to trigger a massive wave of FOMO.
It would be nice if the last day before the weekend could provide a bit of a spectacle at the markets.
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Source: https://newsbit.nl/waarom-daalde-de-bitcoin-koers-gisteren/
