[Bitcoin Now] Reversal to Rise After 2 Weeks... Up 2.03% Compared to Last Week

Rising for Four Consecutive Days After Hitting a Low Around 51 Million Won on the 23rd

After two consecutive weeks of decline following the listing of the Bitcoin spot Exchange-Traded Fund (ETF), the price of Bitcoin has continued its rebound this week, approaching the 57 million KRW mark.

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 3:11 PM on the 28th, the price of Bitcoin was 56.8 million KRW, up 1.61% from the previous day. Compared to the previous week, it rose 2.03%, and it increased 83.89% compared to one year ago.

The price of Bitcoin fell to the 54 million KRW range after the U.S. Securities and Exchange Commission (SEC) announced the approval of the spot ETF on the 10th (U.S. local time). However, after dropping to the high 51 million KRW range on the 23rd, the price found a bottom and maintained an upward trend for four consecutive days through this date.

This month's decline in Bitcoin prices is attributed to investors wanting to dispose of Grayscale Bitcoin Trust (GBTC). Demand for profit-taking and switching to the spot ETF overlapped. It is also known that FTX Estate, the real estate division of FTX, the world's third-largest exchange which is now bankrupt, sold off about 1 billion USD (1.3 trillion KRW) worth of GBTC. JP Morgan previously estimated that approximately 3 billion USD (about 4 trillion KRW) would be withdrawn from GBTC due to arbitrage from 'Net Asset Value (NAV)' trading.

There is an analysis that as this selling pressure on GBTC decreases, the decline in Bitcoin prices has also stopped. According to CNBC, John Todaro, an analyst at U.S. research firm Nydam, noted in a report, "Thursday was one of the days with the smallest net outflows from GBTC," adding, "There were three consecutive days of reduced outflows, which may indicate the beginning of a slowdown in redemptions."

He also said, "It is difficult to quantify how much will come out of GBTC, but I believe the selling pressure driven by major factors is almost at its end." This refers to profit-taking sales including those from FTX.