Bitcoin is currently on a price decline after failing to surge. During the latest price decrease, the top asset dropped below $40k for the first time in more than a month.
A look at the chart shows that a bulk of the downtrend took place within the past hour. This comes after the apex coin opened trading at $41,555. Due to a sudden increase in selling volume, BTC dropped to a low of $39,445. Currently down by more than 4% since the day started many are expecting a price recovery. This also means the asset dropped by more than 18% since its former peak at $49,048.
A closer look at the indicators points to a grime reality. For example, the Relative Strength Index is at 37 which is the lowest since September 2023. There are mixed feelings about the current reading. While many moan about losses they incurred, others are thrilled.
This is the state of the crypto derivative as traders lost more $241 million. Following the most recent drop, long positions made up more than 70% of total REKT funds. The liquidated short position exceeded $32 million. Nonetheless, the rekt fund shows a more than 500% increase in liquidation.
Why is Bitcoin Dipping?
As per reports from Coindesk, one of the main players in the most recent drop is FTX. They asserted that investors sold more than $2 billion of the Grayscale Bitcoin Trust since it became an exchange-traded fund. Additionally, the writeup also stated that the exodus of this trend is FTX’s bankruptcy estate dumping 22 million shares.
Since the approval of bitcoin ETF, many funds issued by BlackRock and Fidelity saw an inflow worth billions of dollars. However, the case was different with Grayscale. Many fault the outflow on the fact that the firm’s ETF had less public appeal as the bitcoin trust lasted for almost a decade before the conversion. FTX’s sale of 22 million shares further damped faith in the said company.
