On Thursday, Bitcoin and Ethereum struggled as the crypto market turned red. This was reflected in the decline of Sei (SEI), Sui (SUI), and THORChain (RUNE) by 15%, 10%, and 13% respectively.
The downtrend for BTC was partly due to Grayscale’s ongoing sell-off. The GBTC ETF issuer had deposited over $1.7 billion in BTC to Coinbase Prime since January 12. This was in response to redemptions, with $450 million in outflows recorded on Thursday alone.
In the past 24 hours, BTC and ETH were trading 3% down, while Solana and Avalanche, both in the top 10 cryptocurrencies by market cap, also saw significant losses of over 5% and 6% respectively.
The global crypto market cap shrank by 2.4% to $1.71 trillion, with altcoins struggling alongside the top players. Ethereum, in particular, fell below $2,500.
Grayscale’s sell-off has raised concerns about the impact on the market, with Alex Thorn, head of research at Galaxy, highlighting the significant amount of BTC moved to Coinbase Prime.
While the market may be experiencing a downturn, it provides opportunities for investors to buy at lower prices. Despite the decline, the overall sentiment towards crypto remains positive, with many still believing in its long-term potential.
