Crypto news update:
Samson Mow, a renowned Bitcoin supporter and the CEO of JAN3, a company focused on BTC adoption, has issued a statement explaining why Bitcoin, the world’s largest cryptocurrency by market capitalization, has dropped 5.4% within just 24 hours, falling below the $62,000 mark.
TradFi market crash pushes Bitcoin down
Mow explained that Bitcoin‘s price decline is due to the current crash in the traditional finance (TradFi) markets. Major market indexes experienced significant drops on Friday, alongside declines in leading tech stocks. Bitcoin fell from the $65,190 range to the $61,100 level, though 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. ”
— Samson Mow (@Excellion)
The CEO of JAN3 reassured the community that Bitcoin’s current decline is temporary, also mentioning the impact of spot Bitcoin ETFs. On Friday, these ETFs experienced a massive cumulative 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)
The largest outflow came from the Fidelity ETF FBTC, which saw a single-day net outflow of $104 million. Grayscale ETF also experienced losses, with investors withdrawing $45.94 million. The smallest outflow was seen by BlackRock’s IBIT at $42.81 million.
Potential U.S. Bitcoin Reserves Not Priced In, Mow Says
Earlier this week, Samson Mow commented on a recent proposal by 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 Nashville, Tennessee.
The senator proposed buying 1,000,000 Bitcoins over the next five years, which would constitute roughly 5% of the total 21-million Bitcoin supply, most of which (more than 19 million BTC) has already been mined.
In his tweet, Samson Mow stated that these potential strategic Bitcoin reserves are not yet priced in, suggesting they will not hinder or decrease the expected massive growth in Bitcoin’s price. The JAN3 CEO believes that within one year, Bitcoin is poised to reach $1 million per coin.
