Last updated on January 27th, 2024 at 08:48 am
Bitcoin’s prices have plummeted to a seven-day low, according to market data for Monday, January 22, 2024. This drop marks the cryptocurrency’s lowest point since the launch of new spot Bitcoin exchange-traded funds (ETFs) on January 11.
At the time of reporting, Bitcoin is trading at $38,958, reflecting a substantial 20.80% decrease from its peak of $49,052 seven days ago. Notably, this recent decline brings Bitcoin to its lowest level since December 2, 2023, when it reached $38,668, as per TradingView data.
Some experts have speculated that the price hike on January 11 was fueled by optimism surrounding the U.S. SEC’s ETF approval and saw a subsequent decline as investors began cashing in on profits.
Bitcoin’s current price decline has also been linked to the continuous sell-off of Grayscale Bitcoin Trust ($GBTC) shares. Investors have reportedly been exiting their positions in the fund and buying shares in the newly approved ETF alternatives because of cheaper service fees.
Though a pioneer in the Bitcoin ETFs scene, Grayscale maintained a comparatively higher service fee of 1.5%, while competitors adjusted their fees to a more competitive range of 0.2% to 0.9%.
Meanwhile, in an interview with CNBC, Michael Sonnenshein, CEO of Grayscale, explained that the asset manager is unfazed by the continuous sales of $GBTC shares and the downtrend of Bitcoin prices. He expressed his confidence in his firm’s future performance while referencing the firm’s past successful track record.
Sonnenshein highlighted Grayscale’s decade-long history as a leading Bitcoin ETF issuer, emphasizing the company’s resilient track record and broad investment base.
Recall that Bitcoin’s price grew 70% from last year when a Federal Court in the United States concluded that the U.S. Securities and Exchange Commission (SEC) must review its decision on rejecting Grayscale Investments’ creation of a spot Bitcoin ETF.
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