Investors in the cryptocurrency market see a loss of $217 million due to apparent Bitcoin sales by Grayscale weighing on the market.

Analysts observed that GBTC shares dipped to a 0.9% discount, signaling potential selling pressure. As spot bitcoin ETF approvals unfolded, futures traders anticipating higher crypto prices faced around $217 million in liquidations over the past 24 hours. The approval of spot bitcoin ETFs became a “sell-the-news” event, triggering contrarian bets.

Concerns about Grayscale’s potential bitcoin sales emerged, contributing to the market downturn. Grayscale, scrutinized by Arkham, moved over $400 million worth of bitcoin to Coinbase Prime, possibly preparing for an eventual sale of GBTC ETF shares.

While BlackRock’s IBIT surpassed $1 billion in assets under management (AUM), other ETFs likely absorbed most of these sales. Bitcoin experienced a decline below $42,000, leading to a broader market retreat. Ether, Solana, and Cardano also saw price drops.

The market downturn resulted in $217 million in losses for highly leveraged futures, with significant liquidations in bitcoin trades alone. Liquidation occurs when an exchange forcibly closes a leveraged position due to a trader’s margin loss.

Despite the market turbulence, some traders anticipate a range-bound scenario in the short term. BTC hovers around the $40,000–$42,000 zone, acting as short-term support. The post-ETF excitement has subsided, and the market is in a sideways movement, awaiting the next catalyst, according to Rachel Lin, CEO and co-founder of SynFutures.