Bitcoin Price Faces Selling Pressure as Outflows from Grayscale Bitcoin Trust Move to Newly Launched ETFs

The price of Bitcoin has dropped to $40,000 due to large outflows from the Grayscale Bitcoin Trust and into newly launched Bitcoin ETFs. Analyst Ali Martinez predicts a retracement for Bitcoin to $34,000 before rebounding and aiming to revisit the upper boundary at $57,000. Traders remain optimistic about the long-term implications of the approval of 11 initial Spot Bitcoin ETFs by the SEC, but there has been a notable shift in sentiment, potentially leading to a multi-month correction or stagnation for Bitcoin. The short-term cost basis for Bitcoin is currently at $37.8K, which historically has served as a support level during bull markets and a resistance level during bear markets.