Bitcoin prompts analysts to suggest short-term panic orders
Bitcoin (BTC) experienced a significant drop below the $40,000 level, causing panic in the market. According to analysts at Greeks.live, this drop led to a surge in short-term panic orders and increased bearish sentiment. However, the overall balance between long and short positions indicates that the market is still engaged in a fierce game.
Bitcoin is currently going through a correction phase following the introduction of several Bitcoin spot exchange-traded funds (ETFs) in the US. In the past 24 hours, the price of BTC has decreased by 3% to $39,970, accompanied by a sharp increase in trading volumes, reaching $29.2 billion.
Greeks.live previously pointed out that the impact of BTC spot ETFs has diminished, and the recent market activity is primarily influenced by Grayscale’s selling pressure and new investor buying. It is expected that this trend will continue during the ETF trading session.
In the meantime, spot Bitcoin ETFs have experienced net outflows of $76 million in a single day, with Grayscale’s fund being the leader in asset outflows, totaling $3.45 billion. Despite this, Michael Sonnenshein, the head of Grayscale, remains optimistic about the future of their ETF. He highlights Grayscale’s long-standing presence in the market, diverse investor pool, and high liquidity as factors that contribute to their confidence.
Overall, the introduction of Bitcoin spot ETFs has had a significant impact on the market, leading to price fluctuations and increased trading volumes. It remains to be seen how these developments will shape the future of the cryptocurrency market.
