Bitcoin (BTC) broke below the immediate support at $31,000 today and that has resulted in selling across several major altcoins. Coincidently, the fresh push to the downside in Bitcoin has come a day after the much talked about unlocking of shares worth about 16,000 Bitcoin from the Grayscale Bitcoin Trust.
The sell-off in cryptocurrencies could also be due to the broader risk-off sentiment on concerns of rising Covid-19 cases. The Dow Jones Industrial Average dropped over 800 points on Monday, on track for its worst decline of the year.
Daily cryptocurrency market performance. Source: Coin360
In a bearish environment, positive statements are generally ignored. While speaking to CNBC on July 19, Grayscale CEO Michael Sonnenshein projected a positive picture about the possibility of a Bitcoin exchange-traded fund (ETF) receiving regulatory approval.
Sonnenshein said it was only a matter of “when” and “not if” that one of the ETF applications will be greenlighted. He also said that GBTC would be transformed into an ETF