Bitcoin has been facing selling pressure from all sides in recent weeks, causing it to fluctuate bitcoin around 40,000 dollars. Yet, the highly anticipated launch of Bitcoin ETFs in the United States was supposed to energize the flagship crypto.
The Bitcoin Bleed Caused by ETFs?
According to some crypto analysts, Bitcoin ETFs are partly to blame for this paradox. The Grayscale Bitcoin Trust (GBTC) has seen massive outflows following the launch of cheaper spot Bitcoin ETFs.

With its 1.5% fees, GBTC is suffering competition from new ETFs charging only 0.25%. As a result, billions of dollars are leaving GBTC for more competitive products, causing forced sales of thousands of BTC.
This selling pressure could last another 2 months according to experts. Under its influence, bitcoin could fall to 37,000 dollars, its 2022 low. Far from the hoped-for euphoria.
A Crypto Expert Predicts More than 700,000 BTC Sales
A sector expert has also recently predicted massive upcoming sales. According to his calculations, over 700,000 bitcoin could be sold in 2024.
Between GBTC, MtGox, and platform bankruptcies, hundreds of thousands of BTC could soon flood the crypto market and put pressure on prices.
Two Factors Behind the Drop Towards 40,000 $
Among the reasons for this recent bearish spiral are an overheated crypto market even before the ETFs and profit-taking. The euphoria around Bitcoin ETFs quickly gave way to concerns. The drop to 40,000$ reflects prior excessive optimism and the need to correct overextended positions.
Beyond ETFs, other upcoming events could weigh on the price of Bitcoin (BTC) in the coming months. The Mt Gox case is expected to release an additional 138,000 BTC into the market by the end of 2023. The bankruptcies of Celsius and FTX could also liquidate tens of thousands of bitcoin.
Furthermore, American miners hold Bitcoin (BTC) reserves that could be partially sold. Although the impact will be diluted over time, this supply could prolong the bearish pressure. Finally, American regulators also hold seized BTC that they could gradually sell, further weighing on the crypto market.
This conjunction of bearish factors has led some to say that Bitcoin is going through a “perfect storm,” despite the promising launch of ETFs. But many believe that these adverse winds are temporary. The real bullish potential of Bitcoin ETFs could materialize over the long term. By absorbing these short-term shocks, crypto could then embark on a new ascent.

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