Analysts are buzzing about the possibility of a classic “sell the news” scenario as the crypto market falls in the aftermath of the recently approved Bitcoin Spot ETFs.
Bitcoin’s price fell nearly 10% to $41,700, and the crypto space saw a whopping $150 million in liquidations in the last 24 hours. Long positions totaled over $150 million.
The recent approval of Bitcoin Spot ETFs set off a downward wave in the market, resulting in a cascade of liquidations. The big question now is whether this is just a short-term correction or the start of a longer-term adjustment.
Anthony Scaramucci, founder of SkyBridge Capital, weighed in on the situation, attributing a portion of Bitcoin’s decline to the sale of Grayscale Bitcoin Trust shares.
Scaramucci revealed in a candid interview with Bloomberg that his trading desk had noticed a significant increase in Grayscale sales activity.
Following the SEC’s ETF approval, shareholders were quickly converting from the trust, opting to realize losses and shift to alternative options with lower fees, he noted.
While Scaramucci blames Grayscale’s sales for the market downturn, Zach Pandl, Grayscale’s general research manager, has a counterargument.
Pandl believes that selling one Bitcoin product to buy another should not affect the price of Bitcoin. He emphasizes that since Grayscale’s legal victory last summer, the potential approval of spot Bitcoin ETFs has been a topic of discussion, implying that the market may be adjusting to anticipated changes.
Investors and analysts are navigating the aftermath of the ETF approval as Bitcoin’s price fluctuates with market dynamics.
The broader implications of this correction, combined with the ongoing debate over spot Bitcoin ETFs, make for an intriguing crypto landscape.
