Bitcoin Breaks Below $32K As ETF Froth Evaporates Bitcoin has extended its recent drop, falling back below $32,000 this morning... Source: Bloomberg And Ethereum has erased the gains from earlier in the week, testing back below $1200 briefly... Source: Bloomberg There are confident dip-buyers who see this as a shake-out of weak (momo-chasing) hands, as CoinTelegraph reports, despite the sell-off, it was buyers hitting the headlines this week, chief among the investment giant Grayscale, which fixed its biggest-ever one-day BTC purchase worth more than $600 million. In the 24 hours to the end of Wednesday, the company increased its balance by a further 8,000 BTC — far more than the supply being added to the market by miners. Furthermore, as CoinTelegraph points out, "It seems $BTC sellers came from #Coinbase. Coinbase Premium Index has been a negative value since an hour ago," Ki Young Ju, CEO of on-chain analytics resource CryptoQuant, https://twitter.com/ki_young_ju/status/1352176712881115136!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); on Twitter uploading the accompanying chart. "Coinbase whales might want $BTC to go lower for consolidation." A day earlier, Ki had highlighted a corresponding increase in deposits across exchanges from whales, indicating a potential desire to trade or sell BTC at prices at or below the mid-range of its trading corridor between $30,000 and $40,000. At a virtual conference this week, CEO Michael Sonnenshein outlined nation state adoption of digital assets and increased interest from financial advisers as two of the major trends which believes will characterize 2021. The 'froth removal' is perhaps most evident in the collapse of the premium associated with buying Bitcoin ETFs... Source: Bloomberg And then there is the flip-flopping Scott Minerd from Guggenheim, who, after proclaiming Bitcoin will hit $400,000 and piling his fund in, is now saying the cryptocuyrrency will drop to $20,000... “I think for the time being, we probably put in the top for bitcoin for the next year or so. And we're likely to see a full retracement back toward the 20,000 level.” "I think for the time being, we probably put in the top for bitcoin for the next year or so," says https://twitter.com/ScottMinerd?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs");. "And we're likely to see a full retracement back toward the 20,000 level." pic.twitter.com/0mUnkOSyW9 — CNBC's Closing Bell (@CNBCClosingBell) https://twitter.com/CNBCClosingBell/status/1352005762164412420?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Although, to his credit, it appears more of a bearish 'trading' tilt as the CIO apparently still maintains a stance that one bitcoin will be worth as much as $400,000 one day. Tyler Durden Thu, 01/21/2021 - 09:03