Bitcoin
Bitcoin Drops Below $65,000 Amid US Sell-Off Fears
Main conclusions
- Bitcoin has fallen sharply from Monday’s highs following some major moves in a cache connected to the US government.
- The Grayscale Mini Bitcoin Trust spot bitcoin ETF is set to launch on Wednesday.
- BlackRock’s iShares Bitcoin Trust saw $210 million in inflows on Monday.
- The spot ether ETF market saw $98.3 million in outflows on Monday.
Bitcoin (BTCUSD) has sharply reversed this week’s rally, falling below $65,000 after rising above $71,000 on Monday.
The price reversal began after 10,000 bitcoins that blockchain intelligence firm Arkham Intelligence said were tied to the U.S. government were moved on Monday, pointing to a possible large bitcoin selloff.
Notably, this movement of funds followed efforts by U.S. presidential candidates Donald Trump and Robert F. Kennedy Jr., and U.S. Senator Cynthia Lummis, to establish a strategic bitcoin reserve on the weekend.
Grayscale Bitcoin Trust Shares (GBTC) saw their value fall by more than 10%, largely driven by the spinoff of 10% of the bitcoin held by the ETF to seed a smaller, lower-fee Grayscale Mini Bitcoin Trust. GBTC investors starting July 30 will receive one share of the new ETF for every GBTC share they own.
Despite the recent price drop, spot bitcoin ETFs saw $124.1 million in net inflows on Monday, with BlackRock’s iShares Bitcoin Trust (I BITE) seeing $205.6 million in inflows, according to Farside Investors. Spot ether (ETHUSD) The ETF market continued to suffer with the Grayscale Ethereum Trust (IT IS) outflows, as $210 million left the fund on Monday and spot ether ETFs saw $98.3 million in outflows collectively.