The price of BTC has struggled considerably since the US Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs (exchange-traded funds).
Still, the ETFs have attracted many investors, leading to record trading volume in the first two days of trading.
Bitcoin ETFs See Record Trading Volume
Available data shows that location Bitcoin ETFs Collectively Achieved Substantial Trading Volume of approximately 8 billion dollars. The volume peaked at approximately $4.6 billion on opening dayfollowed by volume exceeding $3 billion on the second day of trading.
Grayscale's GBTC ETF emerged as the most traded Bitcoin Spot ETF during this time. Surprisingly, he recorded a total trading volume that exceeded $4 billion, cementing his position at the forefront of the market.
New issuers such as BlackRock, Fidelity, Bitwise and others also saw considerable trading activities over the days. Notably, Larry Fink, CEO of BlackRock he praised the initial success and added that he saw the leading cryptocurrency as an asset class rather than a currency.
However, some analysts argued that this initial trading activity was a failure because most of it came from Grayscale capital outflows. But Bloomberg analyst Jeremy Seyffart responded that such arguments were "click bait" based on "god candle expectations that they were out of touch with reality.โ
โWe kept talking about how a significant amount of money for these things would come from other exposures related to Bitcoin and cryptocurrencies. And we continue to talk about the long-term impact of what this could open up as a bridge. โAnything that talks about this being a failure or being terrible is either click bait or you just had โgodly candleโ expectations that were out of touch with reality,โ Seyffart. aggregate.
BTC price falls after selling pressure
Amid the intense trading activity, Grayscale transferred 4,000 BTC valued at $183 million to Coinbase. This transactionmade in four lots of 1,000 BTC each, occurred on Coinbase Prime, a major player in the recently initiated Bitcoin ETFs.
Notably, Coinbase acts as a broker and custodian for Grayscale. Therefore, these BTC transfers may constitute a deposit from the sale of the Grayscale ETF.
Read more: Did Bitcoin reach the top of the market? Smart whale sold 2,742 BTC
Additionally, network analyst JA Maartunn noted the potential for higher sell orders in the Bitcoin market. He noted that two sell orders, spanning 1,900 BTC, were positioned to activate at specific price points. The first is 894 BTC at $44,000 and an additional 1,071 BTC when the asset reaches $45,100.
โThere is currently a prolonged period of strong selling pressure, which may have peaked. It is possible that the price will start to revert to the mean at this time,โ crypto analyst Maartunn. fixed.
These transactions significantly affected the price of BTC. Bitcoin fell more than 7% to below $42,000 before recovering to $42,781 at press time.
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