Crypto Markets Shed $100B Daily Amid Spot Bitcoin ETF Rejection Woes (Market Watch)
Bitcoin’s price went on a real-life rollercoaster at the start of the new year with a pump to $46,000 and a massive dump by nearly five grand yesterday.
Most altcoins are buried in red as well, with the total crypto market cap declining by about $150 billion at one point yesterday.
BTC Slumps Hard
The quiet end of 2023 is nowhere to be found in 2024, at least for now. Bitcoin exploded on Tuesday from $42,500 to a 21-month peak at almost $46,000 as the community was preparing for the potential approval of a spot BTC ETF in the States.
However, speculations arose a day later that the SEC could actually reject all current applications. Although there is little evidence that this could actually come to fruition, it had a massive impact on BTC’s price.
In a matter of hours, the primary cryptocurrency dumped by almost $5,000 since the previous day’s peak and slumped to $41,500 (on Bitstamp). It left millions in liquidationsand erased all the recent gains. And this all happened on Bitcoin’s 15th birthday.
The asset bounced off in the following hours and spiked above $43,000. However, it has failed to reclaim that level decisively and now stands around it.
Its market capitalization has declined to $840 billion, but its dominance over the altcoins has jumped to 51.2% as most alts have dumped even harder.

BTCUSD. Source: TradingView
Alts See Red
When Bitcoin goes in either direction with enhanced volatility, most alternative coins tend to follow suit. This was definitely the case yesterday, and the landscape now is quite painful as well.
Ethereum is down by more than 6% on a daily scale and sits just inches above $2,200. BNB went down from $330 to $300 in hours but now stands above $320.
Ripple, Solana, Cardano, Avalanche, Dogecoin, Polkadot, Polygon, and Chainlink have slumped even more, with losses of up to 12% in the case of MATIC.
The total crypto market cap was also at a near 2-year high of $1.750 trillion before the bloodbath but dumped by $160 billion. As of now, the metric is up to $1.650 trillion on CMC, which means that it is down by $100 billion on a daily scale.

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Bitcoin price faces selling pressure amid GBTC selling as well liquidations by FTX bankruptcy estate, as per Anthony Scaramucci.The world’s largest cryptocurrency Bitcoin (BTC) continues to face selling pressure after the Bitcoin ETF approval. In the last few hours, the BTC price tanked by a further 8% slipping all the way to $41,500 levels, as of press time. Some market analysts have also called the Bitcoin ETF launch a failure.What’s Behind the Bitcoin Price Rout?The recent dip in Bitcoin prices, is partly due to substantial sales of Grayscale Bitcoin Trust (GBTC) shares, as noted by Anthony Scaramucci, founder of SkyBridge Capital. In an interview with Bloomberg Television, Scaramucci revealed an observed trend of significant Grayscale selling, pointing to holders converting their shares from a trust to an ETF format. The U.S. Securities and Exchange Commission’s recent approval of ETFs prompted many to shift to these lower-fee alternatives, resulting in sell-offs to realize lossesGrayscale Bitcoin Trust, with its inception in 2013, witnessed a record-breaking first-day turnover of $2.3 billion on Thursday, marking a historic moment for ETFs. Despite being a popular avenue for Bitcoin exposure, the trust’s shareholders, facing losses, opted to move towards cost-effective alternatives. Following Bitcoin’s surge to a two-year high above $49,000 on Thursday, the cryptocurrency faced a decline below $43,000 on Friday.Grayscale’s managing director of research, Zach Pandl, however, has defended his company’s position. He added that the sale of one Bitcoin product to acquire another should not have an impact on the Bitcoin price.The shares of GBTC experienced a 5.2% decline, closing at $38.58 on Friday. While GBTC shares had an impressive 300% surge in the previous year, Bitcoin’s increase during the same period was nearly 160%, showcasing the trust’s significant role in Bitcoin investment strategies.FTX Also Behind the Bitcoin Selling?Interestingly, Scaramucci also pulls out an FTX angle behind the recent Bitcoin price selling. He added that the bankruptcy estate of FTX added to the cryptocurrency’s downward pressure. FTX, once among the largest crypto exchanges, filed for bankruptcy in 2022 amidst a broader market crash, and the estate is currently liquidating substantial crypto assets.This sell-off, coupled with the recent approval of Bitcoin exchange-traded funds (ETFs), has contributed to heightened selling activity in the market. Scaramucci anticipates that the supply overhang, driven by FTX’s bankruptcy estate selling, will likely conclude in the next six to eight trading days.Additionally, he noted a noteworthy development regarding the Wall Street marketing of ETFs. A quiet period, during which Wall Street refrained from marketing these ETFs, is likely to conclude in approximately eight days. This signals a potential shift in dynamics as Wall Street begins actively promoting and marketing Bitcoin ETFs, introducing a new phase to the market landscape.#Telegram #Osmy_CryptoT #PriceMovements #btcdump #BinanceTournament