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A day after the dreaded Grayscale unlocking event, Bitcoin is in the dumps, with altcoins faring much worse.
On Monday, Bitcoin (BTC) dropped below the $31,000 support level, as sluggish trade gave way to negative pressure.
Fresh pain for BTC price
Data from TradingView showed BTC/USD hitting local lows of $30,630 on Bitstamp on Monday.
Coming a day after Bitcoin’s lowest weekly close since December 2020, the price action underscored the sensitivity of a market with low volume and network fundamentals still in their recovery phase.
Traders had broadly predicted a move downward after Bitcoin had failed to hold on to support levels higher up, with the integrity of $30,000 itself being called into question.
“Volatility, finally for Bitcoin,” in-house trader and analyst Michaël van de Poppe summarized.
At the time of writing, BTC/USD circled $30,700 with daily losses at around 3%. A glance at buy and sell orders on major exchange Binance showed considerable demand remaining at $27,000 and upward, reducing the likelihood of a deeper dive beyond that area.
Among market participants, it was all about catching the likely price bottom.
Not saying this is the bottom.
I’m just saying the PA always looks horrible at the bottom, and that the bottom is only too obvious when it’s too late to catch it.
3k & 30k
— Inmortal (@inmortalcrypto) July 14, 2021
Previously, van de Poppe stated that the final BTC price floor might not be the consequence of a rapid drop or have well defined features.
Nonetheless, a daily closing below $31,000 has not occurred since January.
Altcoins suffer at the hands of Bitcoin bears
Meanwhile, the decrease in Bitcoin created instant pain for altcoins, which often doubled the largest cryptocurrency’s hourly losses.
Ether (ETH) plummeted more than 8% on the day to $1,800 support, indicating a weak altcoin market susceptible to Bitcoin sentiment.
A possible broad explanation may be found at the Grayscale Bitcoin Trust, which conducted a 16,000-BTC unlocking event on Sunday and may have an impact on the market merely a day later.
Today, Grayscale CEO Michael Sonnenshein told CNBC in an interview that the regulatory discussion on Bitcoin exchange-traded funds is entering its ‘’final stages’’ and that the company is committed to turning GBTC into such a product.