Bitcoin price swings: From all-time high to new low below $69k

After the recent witnessing of an all time high, Bitcoin has hit a new low, reaching below the figure of $69,000 per coin. 

As per the latest update, it has climbed to over $70,000, still below the peak of $73,700. 

The success story of Bitcoin is being attributed to the latest spot Bitcoin exchange-traded funds (ETFs); however, as per the Labor Department’s Bureau of Labor Statistics, the producer price index rose by 0.6% in February. 

The respected inflation evaluator revealed the prices exceeded expectations in February. Traders reasoned that the data showed that the Federal Reserve, in all probability, may not lower interest rates in May, paving the way for a selling-off regarding online assets and stocks. A separate angle is that Grayscale transferred almost $400 million in Bitcoin to its caretaker, Coinbase. 

In January, the fund manager was discarding a large amount of online coins, where, at one point, the shifting amounted to $2.2 billion towards the exchange. This was responsible for the drop in prices. 

Grayscale initiated the transfer of its BTC to Coinbase following the conversion of its funds into a BTC exchange-traded fund (ETF) on the 10th of January. 

From the viewpoint of the Head of Research at Coinshare, James Butterfill, both aspects are to be taken into consideration. 

Before Grayscale’s Bitcoin Fund ETF conversion, it functioned as a closed-end fund, wherein investors were required to hold on to their shares for six months. Because it is now an ETF, investors intend to regain their holdings, along with profits. 

Despite Grayscale recouping, the net earrings pertaining to the other nine ETFs trading crossed the $1 billion figure.