Bitcoin falls 9%, dropping below $42K amidst concerns about GBTC flows Bitcoin falls 9%, dropping below $42K amidst concerns about GBTC flows
Prices fell significantly on Friday despite general optimism around Bitcoin ETFs.
2 min read
Updated: Jan. 15, 2024 at 12:14 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin (BTC) prices fell significantly on Jan. 12 as Bitcoin ETFs headed into the weekend after their first two days of trading on U.S. markets.
The price of Bitcoin fell as low as $41,730 at 10:25 p.m. UTC on Friday, marking a 24-hour loss of approximately 9%. As of 11:25 p.m. UTC, Bitcoin’s price had partially recovered to $42,850 for a market capitalization of $840 billion.
Bitcoin last saw similarly low prices on Jan. 3. At that time, the price of BTC started to rise as investors began to anticipate upcoming spot ETF approvals.
The crypto market was down 5.3% over the 24 hours ending at 11:25 p.m. on Friday. Bitcoin (BTC) was down 7.7%, Solana (SOL) was down 9.2%, Avalanche (AVAX) was down 9.1%, Cardano was down 6.2%, XRP was down 5.5%, and Ethereum (ETH) and BNB were down 3.9%.
GBTC redemptions may have caused price slide
The reason for BTC’s price drop is unclear. Spot Bitcoin ETFs have attracted significant demand, with reports of over $4 billion in volume on the first day of trading, and that demand should drive up Bitcoin prices.
However, there are other factors at play. SkyBridge Capital founder Anthony Scaramucci suggested that Bitcoin’s falling price may be due to sales of shares from Grayscale’s GBTC fund, which was converted to a spot Bitcoin ETF on Thursday. CNBC’s Ran Neuner similarly suggested that GBTC Bitcoin could re-enter the supply without being invested in Bitcoin ETFs. Neuner wrote:
“I doubt that the ETF providers have this much demand as quickly.“
Bloomberg’s James Seyffart contested this explanation. He identified –$95 billion of GBTC outflows on the first day of trading, calling this “just a fraction” of what many expected.
Other negative developments may have also affected investor sentiment, indirectly impacting Bitcoin trading and supply. Those events include Vanguard’s decision to exclude spot Bitcoin ETFs from its platform, U.S. lawmaker backlash against the SEC’s failure to secure its X account, and Senator Elizabeth Warren’s objection to the SEC’s ETF approval decision.
Bitcoin Market Data
At the time of press 12:14 am UTC on Jan. 15, 2024, Bitcoin is ranked #1 by market cap and the price is down 1.28% over the past 24 hours. Bitcoin has a market capitalization of $840.19 billion with a 24-hour trading volume of $33.99 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 12:14 am UTC on Jan. 15, 2024, the total crypto market is valued at at $1.68 trillion with a 24-hour volume of $77.05 billion. Bitcoin dominance is currently at 49.92%. Learn more about the crypto market ›
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Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Anthony Scaramucci is an acclaimed American entrepreneur and political consultant, making headlines for his fleeting role as the White House Director of Communications from July 21 to July 31, 2017.