Bitcoin Nears $58K, Triggering Downward Spiral Of Bitcoin ETFs Amid Market Selloff
By Benzinga
The price of Bitcoin (CRYPTO: BTC) is approaching $58,000, leading to a significant decrease in exchange-traded funds (ETFs).
What Happened: According to Benzinga Pro, the iShares Bitcoin Trust ETF (NASDAQ:IBIT) saw a decrease of 3.53% during Monday’s pre-market trading. The Grayscale Bitcoin Trust (NYSE:GBTC) also experienced a decline, dropping by 3.51%.
The Fidelity Wise Origin Bitcoin Fund (BATS:FBTC) was trading 3.18% lower, while the Bitwise Bitcoin ETF (NYSE:BITB) dropped by 3.39% during the same period.
Coindesk states that this downturn in ETFs follows a market selloff over the weekend, which resulted in BTC’s price falling to around $58,000. At the time of writing, BTC was trading at $58,704.30.
ETFs tracking these assets listed in the U.S. recorded outflows on Friday, with BTC ETFs losing $89 million and ETH ETFs seeing $15.7 million in outflows, according to data from SoSo Value.
Why It Matters: The recent selloff in the crypto market, which brought the crypto market capitalization down to $2 trillion, is viewed as a buying opportunity by Bitwise Chief Investment Officer Matt Hougan.
He compared the current situation to the global capital markets meltdown in March 2020, when Bitcoin was hit the hardest, losing 37% and wiping out its yearly gains in a day. However, that turned out to be a buying opportunity for BTC.
Technical analysts are questioning the predictability of future price action based on chart patterns due to Bitcoin’s recent price downturn. Crypto trader Matt Charts pointed out several warning signs of a potential downward move, including a surge in Bitcoin’s open interest to unprecedented levels, contributing to the breakdown. Coinglass data shows Bitcoin open interest at $27.3 billion, a 3.5% increase in the past 24 hours.
Price Action: Bitcoin was trading at $58,906 at the time of writing, down by 3.56% in the last 24 hours, according to Benzinga Pro data.
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Photo by Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
