After the launch of spot ETFs, Bitcoin entered the FOMO stage. Despite the fact that new spot ETFs earned billions of dollars in the first weeks of trading, investors’ attention was focused on the huge amount BTC sold by the Grayscale Bitcoin Trust (GBTC).
The value of BTC dropped to $38K a few days after the opening of spot trading of the ETF. Against the background of the events of the last few weeks, there has been a slowdown in the outflow of funds from GBTC, at the same time, a significant influx of funds into new products continued.
On February 8, Grayscale sold only 1,850 BTC, the remaining nine ETFs added almost 11,000 coins to their funds. On February 9, Grayscale sold 2,252 coins, and the other nine ETFs added more than 13,000.
For reference: only 900 newly mined Bitcoins enter the market every day. It is planned that this value will decrease by half to 450 per day after halving in April.
Recall that in November 2021, the value of the largest cryptocurrency reached $69K and 2022 was a disaster against the background of the collapse of the Terra ecosystem and the problems of the FTX crypto exchange.
BTC ended the year 2022 at a level just above $16K which is about 75% below the historical maximum. Many other cryptocurrencies have suffered even more.
The year 2023 was remembered for the weak price movement of BTC. On October 1, the value of BTC was only $27 thousand, which is 65% more than in 2023, but this is a relatively small recovery.
At the same time, the last quarter of the year was characterized by growing confidence that the SEC, after many years of delays and denial of any attempts to launch a spot bitcoin ETF, will give the green light to this market instrument in early 2024. Against the background of these events, the value of the coin increased by almost 60% in the last three months of 2023 and closed the year above $42K.