Bitcoin’s price has dropped approximately 3% in the past 24 hours, coming close to the crucial $40,400 level. This recent decline has also led to a 4% decrease in the global crypto market cap, which now stands at $1.65 trillion. Altcoins such as Ether, Solana, and XRP have also experienced significant drops in value.

One of the key factors contributing to Bitcoin’s current struggles is the significant amount of BTC being sold by Grayscale Investments. The company has recently moved over 15,000 BTC to Coinbase Prime, bringing the total amount of BTC transferred to over 63,000 since the beginning of 2024. Despite these outflows, Grayscale still holds a substantial amount of BTC, worth over $22.3 billion.

Moving forward, if the selling pressure from Grayscale continues to increase, Bitcoin’s price could potentially drop below its critical support level. On the flip side, a strong bounce from the current levels could see Bitcoin aiming for the $43,000 mark, with the $49,000 range posing as the main resistance zone in case of an upward continuation.

As of Monday at 11:30 am ET, Bitcoin was trading at $40,480.

BTC FAQ:

Q: What caused the recent dip in Bitcoin’s price?
A: The recent drop in Bitcoin’s price can be attributed to ongoing selling pressure from Grayscale Investments, as the company continues to transfer significant amounts of BTC to Coinbase Prime.

Q: What is the current global crypto market cap?
A: The global crypto market cap currently stands at $1.65 trillion.

Q: How much BTC does Grayscale Investments still hold?
A: Despite the outflows, Grayscale still holds 549,116 BTC, worth over $22.3 billion.

Q: What are the potential price outlooks for Bitcoin?
A: If the selling pressure continues, Bitcoin’s price could drop below the critical support level. On the other hand, a strong bounce from current levels could see Bitcoin eyeing the $43,000 mark, with $49,000 being the main resistance zone for an upward continuation.