FTX CEO Samson Mow expects that the Bitcoin regulation is directly proportional to its price as the asset faced turbulence in the past five months.
Massive redemptions from Bitcoin related ETFs such as $104 million from Fidelity’s FBTC have contributed to Bitcoin price meltdown.
The bearish sentiment for Bitcoin is formed through the TradFi market crash coupled with significant ETF outflows.
Bitcoin, the world’s leading cryptocurrency by market capitalization, recently experienced a significant drop, falling 5.4% within just 24 hours and slipping below the $62,000 mark.This has raised the concern of investors and analysts on when and why the stock has started falling as illustrated below. As for this confusing market behavior, Samson Mow, a Bitcoin supporter and the CEO of JAN3, a company that aims to promote the Bitcoin usage, has some ideas on that.
https://twitter.com/Excellion/status/1819550585395486799 ETF Outflows aggravate the Drop
Besides the TradFi market crash, the Bitcoin slump has been aggravated by massive redemptions from Bitcoin-linked exchange-traded funds (ETFs). FBTC from Fidelity was worst affected with a single day’s net redemption of $104 million. Establishments include Grayscale ‘s ETF which recorded withdrawals of $45.94 million and Blackrock’s International bond Smoothing Investment Trust (IBIT) withdrawals of $42.81 million.
This ETF selling places Bitcoin in a continuation of investors’ aversion to market issues, an aspect that creates a bearish environment for Bitcoin.
Impact of TradFi Market Crash on Bitcoin
Consequently, Mow attributed current Bitcoin slippage to declining TradFi markets as the primary reason for the decline of its value. On Friday, key stock market indexes fell sharply and stock prices of top technology firms were no exception. This appears to have placed this pressure on Bitcoin to pull out from the $65,190 level to as low as $61,100 in the broader financial markets. While bare minimum relief was given to BTC taking it back to $61900, the pattern is clearly bearish.
The integration between Bitcoin and other financial markets has emerged to be quite strong, such that many now view Bitcoin as a macroeconomic instrument. Mow’s analysis brings out this growing link asserting that the recent market swings are directly responsible for Bitcoin’s fluctuating price.
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The post Bitcoin Sinks to $61K—Samson Mow’s Analysis on TradFi’s Ripple Effect appeared first on Crypto News Land.
