Bitcoin (BTC) Drops Below $43K, Here’s Reason for This Slump

Godfrey Benjamin
January 13, 2024
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The world’s largest cryptocurrency by market capitalization Bitcoin (BTC) dropped swiftly below $43,000 but is now trading at $43,317.92, after a 5.90% price plunge in the last 24 hours.

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GBTC Dump and BTC Slump

Veteran crypto trader crypto trader and the CEO of Blockchain Investment Fund and Advisory service Ran Neuner attributes the price dip to the recent Grayscale Bitcoin Trust (GBTC) dump-off. 

He clearly stated that the price of BTC is nosedive because people are dumping their GBTC shares. 

He highlighted the fact that over $25 billion worth of Bitcoin had been held in Grayscale’s GBTC for many years. At the time, there was no option of selling them until redemption opened just after the SEC approved spot BTC ETF. Once opened, holders saw it as an opportunity to opt out of the offering. 

Now, “as they exit the Bitcoin must be sold on the market. Now they are taking a discount again!” he said.

Neuner acknowledged that the GBTC holding of $25 billion is large, citing that if just 20% of it is redeemed, that would mean that $5 billion is in sales on the market. He does not think that all of the ETF providers have this much demand in the near term, thus forcing the price lower. 

There is a likelihood that the selling pressure will continue for a while but it is worth noting that Bitcoin is not the only token caught up in the bear movement as many altcoins have also been dragged to new daily lows.

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Bitcoin Revival Plot Imminent

This impulsive reaction of Bitcoin to the GBTC dumping exercise is likely to be short-lived especially as the coin is expected to react to the SEC’s nod to the numerous spot BTC ETF applications in the long term.

It had earlier been predicted that Bitcoin would reach new highs with the coming of the Bitcoin ETFs. Even before now, the coin had started eyeing $50,000 levels.

Alongside the upcoming Bitcoin halving event, it is believed that Bitcoin will see up to a 6,000% increase. For the mean time, Bitcoin critic Jim Cramer has declared that the top is in for the digital currency as spot BTC ETF hype appears to be fading away.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.