- SkyBridge Capital’s founder comments that BTC’s decline following the ETF approval is partially due to GBTC’s selling pressure.
- Scaramucci also relates Bitcoin’s downward trend to FTX’s increasing sale of Bitcoin.
- Despite bullish predictions on BTC, the crypto experienced a bearish track following the ETF approval.
Bitcoin has been witnessing a downward trend since the Securities and Exchange Commission’s (SEC) approval of the Spot Bitcoin ETF launch. Anthony Scaramucci, the founder of the investment management firm SkyBridge Capital, recently commented that Bitcoin’s decline is partially driven by the selling pressure of Grayscale’s GBTC.
Despite anticipating a bull market following the Bitcoin ETF launch, Bitcoin experienced a notable decline after the SEC’s move. Bitcoin, which stood around 46k on January 10, went down to $44,914 on January 11. With fluctuations over the last 2 days, Bitcoin currently stands at a price of $43,064.73, with a substantial decline of 6.74% in one day. The cryptocurrency’s current price marks a decrease of 1.38% in one week and 5.13% in one month.
Commenting on the impact of the notable sales of Grayscale Bitcoin Trust shares on Bitcoin’s price, Scaramucci stated, “There seems to be of lot of selling of Grayscale.” However, Zach Pandl, Grayscale’s Managing Director, posited that the process of selling one BTC product to buy another should not impact BTC price.
Another prominent catalyst for Bitcoin’s bearish trend, as spotted by Scaramucci, is the increasing selling rate of Bitcoin in FTX. FTX, the crypto exchange filed for bankruptcy in 2022, still boasts large amounts of cryptocurrencies. Following the ETF launch, FTX started unwinding them. Reflecting on the matter, Scaramucci cited,
The second thing we are seeing is the bankruptcy estate of FTX is unloading into the ETF announcement. There is a heavy volume of selling in Bitcoin right now. I do expect the supply overhang to be done in the next six to eight trading days.
Furthermore, Scaramucci acknowledged the SEC’s ETF approval as a historic moment for Bitcoin. He also stated that 2023 was SkyBridge Capital’s best year with the purchase of Bitcoin, Ethereum, and Solana in large volumes. In contrast, 2022 was a “brutal” and the “worst” year for them.
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