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Samson Mow, a renowned Bitcoin supporter and chief executive officer at BTC adoption-focused company JAN3, has published a statement explaining why the world’s largest cryptocurrency by market capitalization, Bitcoin, has dropped 5.4% within just 24 hours, falling below the $62,000 level.
TradFi market crash pushes Bitcoin down, BTC ETF outflows "help"
Mow explained that the Bitcoin price is plummeting due to the TradFi (traditional finance) market crashing down at the moment. The leading market indexes demonstrated massive declines on Friday, along with the stocks of leading tech giants. Bitcoin has fallen from the $65,190 zone to the $61,100 level. A slight recovery allowed BTC to rise to the $61,900 zone earlier today.
#Bitcoin is just being dragged down temporarily by TradFi markets - amplified because of increased surface area due to ETFs. But with M2 on the rise again it feels like the main event is almost here. ♎️ pic.twitter.com/uecfBUnD5D
— Samson Mow (@Excellion) August 3, 2024
The JAN3 CEO assured the community that this Bitcoin drag down is a temporary thing, also mentioning spot Bitcoin ETFs. On Friday, those experienced a massive cumulative funds withdrawal of $237 million.
Bitcoin spot ETF had a total net outflow of $237 million on August 2, Grayscale ETF GBTC had a single-day outflow of $45.9462 million, Fidelity ETF FBTC had a single-day net outflow of $104 million, and BlackRock ETF IBIT had a single-day inflow of $42.8142 million.…
— Wu Blockchain (@WuBlockchain) August 3, 2024
The largest amount of funds was lost by Fidelity ETF FBTC with a single-day net outflow of $104 million. Grayscale ETF continues to lose funds as well, this time investors withdrew $45.94 million from it. The smallest outflow here was faced by BlackRock’s IBIT — $42.81 million.
Potential U.S. Bitcoin reserves not priced in, Mow says
Earlier this week, Samson Mow commented on the recent suggestion made by the pro-crypto senator Cynthia Lummis to create strategic Bitcoin reserves for the U.S. government within the next five years. This announcement was made during the Bitcoin 2024 event in the U.S., Nashville, Tennessee.
The senator suggested buying 1,000,000 Bitcoins over the next five years, which would constitute roughly 5% of all the 21-million Bitcoin supply, most of which (more than 19 million BTC) has already been mined.
In his tweet, Samson Mow said that he believes these potential strategic Bitcoin reserves not to be priced in, therefore making them not slow down or decrease the massive BTC price growth, he expects. The JAN3 CEO is a believer that within one year from now, Bitcoin is bound to reach $1 million per coin.