Bitcoin price dips, $130 million in total liquidations with economist anticipating long weekend for BTC bulls

Bitcoin price has recorded double-digit losses since spot ETFs started trading on January 11, 8% drop on Friday.
BTC suffers partly in the wake of Grayscale GBTC dumping as holders leverage open redemption options.
Renowned economist anticipates tough weekend for BTC holders, as trading volumes drop 40%. Liquidations hit $13 million.

Bitcoin (BTC) price is trading with a bearish bias, coming on the back of Grayscale (GBTC) dumping as investors seize the opportunity to redeem their Grayscale trust, selling BTC to the open market.

Also Read: Grayscale outflows near $600 million on trading day 3 as GBTC holders leverage spot BTC ETF approvals

Bitcoin price drop liquidates $130 million positions

Bitcoin (BTC) price dropped 8% on Friday and saw up to $130 million in total liquidations. This comprised $112.84 million longs and $17.57 million worth of short positions.

BTC liquidations

With this, up to $1.19 billion in open interest went down the drain as GBTC holders seized the opportunity to exit from the $25 billion held in the Grayscale trust, as the opening of redemptions finally provided a way out.

Bitcoin Price is dumping as people are dumping their GBTC shares.

GBTC held $25bn+ worth of Bitcoin that has been locked up for years with no option to be sold. As soon as the redemption option opened, for the first time people are starting to exit - as they exit the Bitcoin… pic.twitter.com/EqHgpHyVdd
— Ran Neuner (@cryptomanran) January 12, 2024

According to Bloomberg ETF analyst James Seyffart, the Grayscale GBTC had an outflow of $484 million, while other players in the ETF market like ARK Invest were recording inflows of up to $42.5 million, with the former moving Bitcoin to Coinbase addresses, a move pointing to users redeeming.

UPDATE: Looks like @Grayscale's $GBTC saw $484 million in outflows today. @ARKInvest/@21Shares' $ARKB saw $42.5 million of INflows. @BitwiseInvest's $BITB flat on flows today. Don't have the data on any of the others yet. Total out of $GBTC is now ~$579 million pic.twitter.com/Ocuw9eHaHs
— James Seyffart (@JSeyff) January 13, 2024

Renowned economist and strategist Peter Schiff anticipates a long weekend for BTC holders as the retail market takes a back seat. He anticipates more sell pressure especially “if the new Bitcoin ETFs gap way down on Monday.”

Bitcoin has already fallen from just above $49K yesterday, to just below $42K today. That's over a 14% decline. It could be a long weekend for #Bitcoin bulls. If the new #BitcoinETFs gap way down on Monday it will be interesting to see how investors react. I doubt they'll #HODL.
— Peter Schiff (@PeterSchiff) January 12, 2024

At the time of writing, Bitcoin price is $42,711, with multiple indicators flashing bearish as the weekend sets in. Nevertheless, the big picture bullishness is still not threatened, until such a time when Bitcoin price descends to the $30,000 psychological level.

BTC/USDT 1-day chart

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.