Ethereum
Bitcoin Falls Below $65,000 on US Selloff Fears
Key points to remember
- Bitcoin is down sharply from its Monday high following major moves in a U.S. government-linked stash.
- The Grayscale Mini Bitcoin Trust Bitcoin Spot ETF is set to launch on Wednesday.
- BlackRock’s iShares Bitcoin Trust saw $210 million in inflows on Monday.
- The Ether ETF spot market saw $98.3 million in outflows on Monday.
Bitcoin (BTC/USD) abruptly reversed this week’s uptrend, falling below $65,000 after exceeding $71,000 on Monday.
The price reversal began after 10,000 bitcoins that blockchain intelligence firm Arkham Intelligence says are tied to the U.S. government were moved on Monday, indicating a possible major bitcoin selloff.
It is worth noting that this movement of funds follows efforts by US presidential candidates Donald Trump and Robert F. Kennedy Jr., as well as US Senator Cynthia Lummis, to establish a bitcoin strategic reserve during the weekend.
Shares of Grayscale’s Bitcoin Trust (GBTC) have seen their value drop by more than 10%, largely due to the splitting of 10% of the bitcoins held by the ETF to seed a smaller, lower-cost Grayscale Mini Bitcoin Trust. GBTC investors will receive one share of the new ETF for every GBTC share they own starting July 30.
Despite the recent price decline, spot Bitcoin ETFs saw $124.1 million in net inflows on Monday, with BlackRock’s iShares Bitcoin Trust (I BITE) with $205.6 million in inflows, according to Farside Investors. Spot ether (ETH/USD) The ETF market continued to suffer from Grayscale Ethereum Trust (ETHÉ) outflows, as $210 million left the fund on Monday and spot ether ETFs saw $98.3 million in collective outflows.