Bitcoin has returned to its lowest price since early December as Grayscale’s Bitcoin sell pressure continues.
Bitcoin (BTC) fell under $40,000 on Monday for the first time since early December as a wave of ETF outflows pushed the asset into deeper waters.
Over the past 24 hours, over $236 million in trades have been liquidated, including $208 million worth of longs.
Bitcoin trades for $39,504 at writing time – a price last seen for the asset on December 2 2023.
According to Coinglass, Over 90,000 traders have been liquidated in the last 24 hours. The largest liquidation took place on Bybit on a $5 million BTC/USD trade.
Bitcoin has trended downwards ever since Bitcoin spot ETFs were approved for trading on national securities exchanges on January 10.
While new ETF products of amassed billions of dollars of inflows, their effect on the market has largely been counteracted by massive outflows from the Grayscale Bitcoin Trust (GBTC).
Since converting into an ETF, GBTC’s share discount has been restored to parity with its underlying BTC holdings, creating major profits for some of its earlier buyers.
Many of those buyers are now cashing out, which has led to Grayscale selling over $500 million of BTC per day as the fund redeems its shares.