- Investors withdraw $598.9 million from Grayscale ETF, triggering a 3% drop in Bitcoin price to $61,500.
- JPMorgan anticipates further price corrections for Bitcoin post-halving, potentially falling toward $42,000 due to lower mining costs.
Recently GBTC, after a streak of successful investments that significantly boosted his portfolio, he faced a less favorable investment that impacted his gains. Although this setback does not erase his track record of success, it does add an element of uncertainty to his ability to maintain his outstanding performance in the future.
That’s because a bunch of investors in a Bitcoin-specific fund called Grayscale’s ETF decided to pull their money out at almost the same time, which is pretty rare.
We’re talking about about $600 million that flew out of the fund in a single day. To give you an idea, it’s like a crowd deciding to run out of a concert that was about to hit its prime.
This move caused the price of Bitcoin, which was enjoying a fairly high peak of $63,585, to stumble and fall 3.3%, staying below $61,500. And while this may sound like the end of a party, the reality is a bit more complicated.
JPMorgan experts think this could be just the start of a series of stumbles following a major Bitcoin event known as the “halving”, which basically halves the reward for mining Bitcoin.
$600m outflow for $GBTC today. That’s a lot. Two steps forward one step back. https://t.co/eWaEPMzUIW
— Eric Balchunas (@EricBalchunas) February 29, 2024
This halving is a big event for Bitcoin because it makes it more expensive to produce, which generally drives up its price, a topic we’ve covered nicely on ETHNews. But analysts are saying that, after all this excitement, it’s possible that Bitcoin’s price will actually go down, even to $42,000.
Why? Well, because mining Bitcoin could become less difficult than initially thought, which would mean that the cost of producing a Bitcoin would also be lower.
Although Bitcoin just stumbled a bit due to the massive withdrawal of money from a fund, things could get a bit wobblier after the halving. But as with any roller coaster, after the lows come the highs, and only time will tell where this exciting ride is headed.
As of this writing, Bitcoin is trading at $62,157.11
