- BTC positions worth $63 million have been liquidated in the last 24 hours, 80% of which were long positions.
- BTC has crashed 16% since ETF approval day.
The week started bloody for the crypto market, according to the Bitcoin industry barometer [BTC] For the first time in almost seven weeks, the price fell below $40,000.
Massacre in the market
The king coin fell to $39,536 at 7:45 PM UTC on January 22, AMBCrypto noted using CoinMarketCaps facts. The price recovered to $40,063 at the time of writing as some traders bought the dip.
However, Bitcoin’s decline caused a ripple effect on the broader market, with the total market capitalization falling 2.62% in 24 hours.
The slump caused a huge dent in futures traders’ portfolios. According to Mint glassBTC positions worth $63 million have been liquidated in the last 24 hours, 80% of which were long positions.
In total, $211 million in liquidations were observed across the market, with longs making up the majority.
Source: Coinglass
Outflows in shades of gray increase selling pressure
The catalyst for the carnage remains the cash flows from Grayscale Bitcoin Trust, formerly Grayscale Bitcoin Trust (GBTC).
According to AMBCrypto’s analysis of CryptoQuant data, 14,291 Bitcoins flew out of the fund on January 22, amounting to $570 million at current market prices.
Since the launch of the ETF, Grayscale’s on-chain balance has fallen by 66,000 BTCs, most of which are being liquidated on the secondary market.
Source: CryptoQuant
Current developments contrasted with positive expectations prior to ETF approval. While Bitcoin topped out at $48,000 on ETF approval day, it has crashed 16% since then.
The negativity started thinking about the social volume of top cryptos.
According to data from Santiment, there was 35% less discussion about it BTC and 21% less direction ETH compared to the week before ETFs were approved for trading.
Source: Santiment
Read Bitcoin’s [BTC] Price forecast 2024-25
Dormant coins are making a comeback
Amid these developments, an intriguing behavior came to light. In particular, Ki Young Ju, CEO of CryptoQuant, has drawn attention to the revival of old Bitcoins in recent days.
This most likely happened because GBTC shareholders gained access to their Bitcoin after a long time and dumped it for profit.
Old #Bitcoin is on the move.
Someone broke an old piggy bank and distributed its contents, probably through OTC deals.
The average dormancy of $BTC reached a five-year high just a few days ago.https://t.co/Q5K2bHFRGB pic.twitter.com/cBrrCL6KtF
— Ki Jonge Ju (@ki_young_ju) January 22, 2024