The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on January 10, and since then, Bitcoin’s (BTC) price has been trending downward, surprising many market participants. The largest cryptocurrency recently pulled back to $41,900 in the early hours of the day, triggering the liquidation of positions worth $338 million. Investors are curious about when the downward trend that started after the spot ETF approval will end, while renowned fund manager Anthony Scaramucci suggested that the selling pressure faced could decrease within 6-8 business days.
Bitcoin Under Selling Pressure
SkyBridge Capital‘s CEO and famous fund manager Anthony Scaramucci spoke to Bloomberg and commented on the recent decline in Bitcoin. Scaramucci stated that the latest drop in the largest cryptocurrency was partly due to sales from the liquidation of assets by Grayscale Investments’ spot Bitcoin ETF GBTC and the bankrupt exchange FTX.
According to the renowned fund manager, the selling pressure hitting Bitcoin and altcoins could diminish in the next 6-8 trading days. Scaramucci believes that with the easing of selling pressure, the path could be cleared for the largest cryptocurrency to rebound.
According to current data, BTC is trading at $43,095, down 5.89% in the last 24 hours at the time this article was written.
Spot Bitcoin ETF Trading Volume Exceeds $7.5 Billion in 2 Days
Furthermore, data shows that the cumulative trading volume of spot Bitcoin ETFs exceeded $7.5 billion on the second trading day. According to Yahoo Finance, the cumulative trading volume of ETFs exceeded $4.5 billion on the first day, reaching up to $4.6 billion.
Experienced Bloomberg ETF analyst Eric Balchunas noted that the majority of GBTC trades were sell orders due to investors shifting to lower-fee products like BlackRock and Fidelity’s spot Bitcoin ETFs. The data pointed out by Balchunas shows that GBTC saw nearly $100 million in net outflows on the first day.
During this period, the ETFs of Bitwise, Fidelity, and BlackRock saw net inflows of $237 million, $226.97 million, and $111.67 million, respectively.
