Bitcoin (BTC) Price Dragged by Two Trends, IntoTheBlock Data Says.

Both Bitcoin (BTC) and Ethereum (ETH) see aggregated network fees declining due to shrinking volatility. While Bitcoins (BTC) still flow to exchanges, Ethereum (ETH) reserves started leaving CEXes. Is the crypto correction close to ending?

Bitcoin (BTC) price tanks on GBTC FUD and institutions taking profit, IntoTheBlock says.

The price correction of Bitcoin (BTC), the largest cryptocurrency, is caused by the FUD about Grayscale's mass-selling and profit-taking initiated by largest players. Such statements were made by top research platform Into TheBlock in its recent on-chain insights report.

Based on its tracking mechanisms,

Into TheBlock confirmed a $4.3 billion outflow from Grayscale Bitcoin Trust (GBTC). Technically, Grayscale's GBTC,

which had been at a discount relative to

the firm's Bitcoin (BTC) holdings for two

years, was converted into an ETF. This

caused whopping outflows that

contributed to the BTC price tumbling.

Even being accompanied by a $1 billion outflow from the FTX holdings portfolio, this catalyst should not be overestimated. Despite these negative processes, Bitcoin ETFs registered a significant $820 million net inflow, which hints at solid interest from large buyers.

The addresses holding over 1,000 BTC each are buying en masse, data says. They were increasing their holdings through the entire year of 2023, but in January this process accelerated.

At the same time, large hedge funds decided to take profits, which is also a major bearish price catalyst. Their activity pushed the price to new local highs in Q4, 2023, but now the situation looks the opposite:

As the ETF approval window began we see that premium in futures quickly turning into a discount suggesting firms began taking profits.

By printing time, Bitcoin (BTC) is changing hands at $41,715; the largest cryptocurrency recovered almost 4% in the last 24 hours.