The cryptocurrency market experienced a bearish trend on Thursday as both Bitcoin and Ethereum struggled. Bitcoin’s declining price came amid a significant sell-off by investment firm Grayscale. The firm moved over $1.7 billion worth of Bitcoin to Coinbase Prime since January 12, resulting in a decline for altcoins as well. The global crypto market cap also shrank by about 2.4% to $1.71 trillion, with SEI, SUI, and RUNE being among the biggest decliners on the day.
Grayscale’s BTC Sell-off Amid ETF Redemptions
Grayscale’s transfer of 9,840 BTC worth $418 million to Coinbase Prime on Thursday added to the ongoing bearish trend. The company has now moved a total of 41,478 BTC to Coinbase Prime since January 12, primarily to handle redemptions. This significant sell-off also led to $450 million in outflows for Grayscale on Thursday, as reported by Alex Thorn, head of research at Galaxy, on Twitter.
Both Bitcoin and Ethereum were trading 3% down in the past 24 hours. Solana and Avalanche, two of the top 10 cryptocurrencies by market cap, also experienced drops of over 5% and nearly 6% respectively.
FAQs
Why did Bitcoin and other cryptocurrencies decline on Thursday?
Bitcoin’s price decline on Thursday was attributed to an ongoing sell-off by investment firm Grayscale, which transferred over $1.7 billion worth of Bitcoin to Coinbase Prime since January 12. This selloff resulted in a bearish trend for altcoins as well.
How much Bitcoin did Grayscale transfer to Coinbase Prime on Thursday?
Grayscale transferred 9,840 BTC worth $418 million to Coinbase Prime on Thursday, adding to a total transfer of 41,478 BTC since January 12. This was primarily to handle redemptions.
What were the price movements of other top cryptocurrencies on Thursday?
Alongside Bitcoin and Ethereum, Solana experienced a drop of more than 5% as it dipped below $100, while Avalanche was trading nearly 6% in the red at $33.49. Both assets are part of the top 10 cryptocurrencies by market cap.