Bitcoin and cryptocurrencies are falling, what’s happening?

When rehearsing a recovery over the weekend, the Bitcoin it came back to $41,850. However, this Monday (22) the price fell again, once again testing the support in the $40,000 region. Reached the daily decline 2.5%.

Other cryptocurrencies revolve around Bitcoin and also operate lower. The other four largest on the market, Ethereum (ETH), Binance Coin (BNB), Solana (SOL) It is Ripple (XRP)working with a drop-in 4.3%, 2.4%, 6.4% It is 4.2%respectively in the last 24 hours.

The devaluation has no clear reason. Still, the massive selling of BTC by miners and the potential profit-taking by some traders following the adoption of ETFs are two explanations worth considering.

Cryptocurrencies fall this Monday (22)

Among the 100 largest cryptocurrencies on the market, losses amount to 11%as with the I know). As a sequel to, Injective (INJ), BitTorrent (BTT) It is Chiliz (CHZ) present the worst performance of the day, with declines 8.2%, 8.5% It is 10.5%respectively.

The decline is widespread, including other household names such as Ethereum Classic (ETC), Avalanche (AVAX) It is Celestia (AUNT), which has enjoyed great appreciation in recent months. In other words: a natural breathing space for the market, which is far from worrying.

Of the few operating at a peak this Monday (21), none are showing brilliant results. While dYdX (DYDX) with a slight increase of 0.5%, FraxShare (FXS), Manta Network (MANTA) It is Siacoin (SIA) valued 1.2%, 1.3% It is 6% in the last 24 hours.

Either way, the losses are frightening when added together. Since the approval of Bitcoin ETFs in the US 11 days ago, cryptocurrencies have lost US$256 billion (R$1.3 billion) in market value.

Bitcoin could end January in the red

At the time of writing, the price stood at $40,600. Bitcoin (BTC) works with a decrease of 3.78% in January, potentially interrupting the winning streak of the past four months.

Investors’ attention is focused on Grayscale’s portfolios, which continue to shrink day after day. A few minutes ago, approximately 19,250 bitcoins (R$3.9 billion) They left their addresses again, indicating that there was a sale by the management company at the end of the day.

Grayscale portfolios, responsible for the GBTC fund, are seeing new outflows this Monday (22).Grayscale portfolios, responsible for the GBTC fund, are seeing new outflows this Monday (22).
Grayscale portfolios, responsible for the GBTC ETF, are seeing new outflows this Monday (22).

While ETFs from other managers are leaving this account positive, indicating more inflows than outflows, it is possible that these purchases are coming from existing market participants.

In other words, they would leave traditional exchanges to take advantage of the rates offered by ETFs because they are lower. Therefore, this flow would be money already circulating on the market and not necessarily representing the entry of new investors.

Finally, the $40,000 region could be an interesting entry point as Bitcoin still has two strong expectations for 2024: the halving and possible interest rate cuts by central banks, including the Fed. However, the decline could be significantly extended if this support is provided. broken.

Source: Live Coins