Bitcoin Price Hits a 6-Week Low Below $40K — What Lies Ahead for BTC?

Bitcoin faced a sudden drop below $40,000, marking its first dip since December 3, 2023. The ongoing GBTC-related BTC selling at Coinbase is impacting investor sentiment across the crypto market, contributing to this decline.

On January 22, Bitcoin rapidly slid from $41,553, experiencing a 4.3% drop in the last 24 hours and a 9.3% decrease over the past 30 days, reaching a six-week low of $39,450, as per CoinMarketCap data.

This price movement coincides with traders grappling with the unexpected approval of 11 spot Bitcoin ETF products by the U.S. Securities and Exchange Commission. GBTC selling is being attributed to the current market downturn.

Grayscale deposited over $600 million worth of BTC on Coinbase on January 22, totaling more than $2 billion. Simultaneously, FTX’s bankruptcy managers sold their entire 22 million GBTC shares (almost $1 billion), further influencing the downward price trend.

The last instance of Bitcoin trading below $40,000 was approximately one and a half months ago, on December 3, 2023, hitting a low of $39,293 before rising to a 20-month high of around $49,000 on January 11.

Trader and analyst Seth noted Bitcoin’s dip below $40,000, expressing a desire to witness the flagship cryptocurrency achieve a “daily close above 40K!”

Coinglass data reveals long-position liquidations for Bitcoin surpassing $56 million on the day, with the tally continuing to rise at the time of writing. Cross-crypto long liquidations totaled over $208.7 million.