Some of the addresses holding Bitcoin (BTC) are currently in the red zone. According to IntoTheBlock's report, approximately 23% of BTC holders are in a losing position.
Bitcoin price drops also affected some major BTC holders.
MicroStrategy, known as the largest private-sector Bitcoin holder, has lost 4%. Also, Marathon Digital and Riot Platforms, each lost about 2%. This condition is believed to be caused by the recent decrease in BTC price and volatility in ETF Bitcoin market.
Data from CoinMarketCap indicated a BTC price drop approximately to the lowest level since the beginning of December. Bitcoin has traded at $39,676 today, tumbled about 20% since ETF Bitcoin traded on the market.
Keith Alan from Material Indicators saw unusual liquidity movements in the Bitcoin market. He notes that the largest bid liquidity for Bitcoin (BTC) has shifted below the previously established Lower Low.
He is concerned that a price breakdown might occur in the near future. He also warns that bulls need to build momentum to prevent BTC from declining to $38,000.
The decrease in BTC price is also followed by several altcoins, such as Optimism (-21.4%), Polygon (-15%), Ethereum (-14%), Decentraland (-8.9%), and Bitrue Coin (4.6%). Overall, Bitcoin has fallen over -20% since ETF Bitcoin traded. Cryptocurrency market capitalization also experienced a decrease of -8.52% over a week.
The crypto market faced sell-side pressure from many aspects, as part of consumer rotation among new spot Bitcoin exchange-traded funds (ETFs).
Bloomberg Intelligence analyst James Seyffart highlights the inflow of funds into spot Bitcoin ETFs remains positive, totaling over $1.1 billion. But, today he saw that Bitcoin ETFs are experiencing a period of ebb and flow. The total fund withdrawals in the Bitcoin ETF market have reached $3.45 billion, excluding BlackRock data.
The most significant withdrawals occurred from Grayscale. Previously, Grayscale recorded $272 million in inflows, now they experienced a significant outflow of $640 million. Otherwise, BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund recorded inflows of more than $1 billion.
But, Seyffart is still optimistic enough that this situation will calm down in the next two weeks. Seyffart's optimism seems to align with the opinion of crypto market analyst Yuya Hasegawa. According to Hasegawa, the outflow from GBTC should not have a significant impact because the inflow of bitcoin into other ETFs has offset the outflow by $1.2 billion so far.