- Bitcoin price is currently near $40,480 after falling 3% over the past 24 hours.
- BTC is facing pressure as the GBTC outflow causes Grayscale to sell more Bitcoin.
Bitcoin (BTC) price suffered another sell-off on Monday, with the cryptocurrency falling more than 3% to remain just above the key $40,400 level.
With BTC falling today, the global cryptocurrency market cap has also fallen by about 4% over the past 24 hours to $1.65 trillion. This outlook is one of the broader altcoin weaknesses. The price of Ether fell below $2,400, Solana fell below $87, and XRP fell to $0.52.
Injective, Near Protocol, and Avalanche are some of the biggest losers on the day, with nearly double-digit declines over the past 24 hours.
Bitcoin price falls due to Grayscale BTC dump
The flagship cryptocurrency’s troubles come as GBTC issuer Grayscale Investments moves more of its BTC holdings to Coinbase Prime. The price plummeted last week as GBTC outflows increased.
Grayscale moved an additional 15,308 BTC as trading markets opened on Monday, according to on-chain data from Arkham Intelligence, a blockchain security and market intelligence platform. As of January 22, 2024, the total number of transfers had grown to over 63,991.
The digital asset manager has deposited a total of more than $2.68 billion in BTC into Coinbase Prime since the GBTC exchange-traded fund began trading on January 11.
According to Arkham data, Grayscale still holds 549,116 BTC worth over $22.3 billion.
Grayscale deposit 15,308 $BTC(USD 623.8 million) ~ #CoinbasePrime Again 50 minutes ago.
After the ETF was passed, #grayscale Deposited 63,991 $BTC(USD 2.68 billion) ~ #CoinbasePrime During US stock opening hours (14:30 UTC).
According to Arkham, #grayscale Currently holds 549,116… pic.twitter.com/i1LtKryu6W
— Lookonchain (@lookonchain) January 22, 2024
BTC price outlook
If GBTC-related selling pressure continues to grow, Bitcoin price could fall below important support levels. If a new round of panic selling hits the market, bears are likely to target lower areas.
However, if a strong bounce from current levels causes the bulls to flip higher, Bitcoin price could eye the 43,000 hurdle. The recent high above $49,000 could become a key resistance area if the upward continuation strengthens.
BTC was trading at $40,480 at 11:30 a.m. ET on Monday.