With the downward wave that started after the approval of Bitcoin Spot ETFs, many analysts think that this event is a “sell the news” situation.
BTC price lost almost 10% today and hit the $41,500 level. A large amount of liquidation has also hit the cryptocurrency market in the last hour. A total of 93 million dollars of liquidation took place in the last hour. Of these, $86.81 million was in long positions and $6.55 million was in short positions.
According to SkyBridge Capital founder Anthony Scaramucci, Bitcoin's recent decline is partially attributed to the sale of Grayscale Bitcoin Trust shares.
In a recent interview with Bloomberg, Scaramucci noted significant sales activity for Grayscale. He explained that his trading desk had observed shareholders converting from a trust this week after the U.S. Securities and Exchange Commission approved ETFs, selling to book losses and switch to lower-fee alternatives.
However, Grayscale's general manager of research, Zach Pandl, argued that selling one Bitcoin product to buy another Bitcoin product should not affect the price of Bitcoin. He added that the potential approval of spot Bitcoin ETFs has been a subject of debate since Grayscale's court victory last summer.
Pandl also noted that following the sharp increase in Bitcoin's valuation, it is natural to sell the asset for some profit. GBTC recorded $2.3 billion in volume on Thursday, the largest first-day turnover ever for an ETF.
On the same day, Bitcoin surpassed $49,000, reaching a two-year high before falling to $41,500 on Friday.
Scaramucci also revealed that FTX's bankruptcy estate was selling into the market following the ETF announcement. “There is currently heavy selling volume in Bitcoin. I expect the oversupply to clear within the next six to eight trading days,” he said.
He also noted that this is a quiet period for Wall Street and marketing of these ETFs will begin in about eight days.
*This is not investment advice.