Bitcoin , the main cryptocurrency, dropped below the $39,000 level, causing alarm in the crypto community.
There are several potential reasons for this unexpected plunge in Bitcoin prices:
1 #ftx sold GBTC shares: FTX sold shares of Grayscale's Bitcoin Trust (GBTC) worth about $1 billion, which has rocked the cryptocurrency market. FTX, being in bankruptcy, liquidated all 22 million shares of GBTC, causing turbulence.
2 #etf approvals and volatility: Although the US Securities and Exchange Commission has approved a bitcoin ETF, the market is reacting negatively to the large outflows from Grayscale's Bitcoin Trust (GBTC), especially under the influence of large traders.
3 Investors take profit: In order to lock in profits, some investors, expecting prices to rise, may sell assets during small increases, causing short-term volatility.
4 Regulatory turbulence: Strict regulatory measures against leading crypto exchanges and payment systems are causing uncertainty and negative sentiment among investors.
5 Pause before the publication of economic data: With important economic data such as US GDP and the consumer price index coming out this week, investors may refrain from active moves, waiting for the market's implications.
Analysts are warning of a possible further drop in Bitcoin's price, pointing to the $32,700 level as a key point to watch. Factors such as regulatory changes, large trading operations, and the publication of economic data may continue to influence the cryptocurrency market in the near future.
