Bitcoin Retreats: ETF Dream Fades, Price Tumbles Under $42,000
13 Januar 2024 - 11:00AM
NEWSBTC
In a dramatic turn of events, Bitcoin prices plummeted Friday,
erasing almost 10% of its value and dashing hopes of a sustained
rally fueled by the highly anticipated launch of spot Bitcoin ETFs.
The cryptocurrency, which had surged to a two-year high of $49,000
just a day prior, retreated below $42,000 as investors digested the
implications of the new financial instruments. Bitcoin’s Downturn:
ETF Impact, Trust Sell-off, FTX Bankruptcy Analysts point to a
confluence of factors behind the sudden downturn. Profit-taking by
early adopters who cashed in on the ETF-induced surge is likely one
major driver. With the news out of the way, some investors might
have seen an opportunity to lock in profits after a rapid climb.
Related Reading: Lido (LDO) Action Heats Up: Nearly 90% Of Holders
See Profits On Crypto Climb BTC hitting $41,730 in the last 24
hours. Source: Coingecko Adding to the selling pressure was a wave
of selling from Grayscale Bitcoin Trust shares. The long-standing
trust, which tracks Bitcoin’s price but doesn’t directly hold the
cryptocurrency, saw significant outflows as investors shifted
towards the newly available ETFs. This switch, while seemingly
positive for the ETF market, contributed to the immediate pressure
on Bitcoin itself. Further complicating the picture, the bankruptcy
proceedings of FTX, the once-dominant crypto exchange, are also
believed to be playing a role. Assets are reportedly being
“unloaded” amid the increased market activity surrounding the ETF
launch, leading to additional downward pressure on Bitcoin’s price.
Bitcoin slightly above the $43K level today. Chart: TradingView.com
Despite the significant correction, not everyone is singing the
blues. Some analysts believe the pullback is a healthy development,
allowing the market to adjust after the initial hype surrounding
ETFs. Zach Pandl, managing director of research at Grayscale, views
the profit-taking as a natural reaction to the recent surge and
suggests it shouldn’t have a long-term impact on Bitcoin’s price.
Bitcoin ETF Launch: Landmark Moment, Uncertain Future While the
immediate future remains uncertain, the launch of spot Bitcoin ETFs
represents a landmark moment for the cryptocurrency industry. With
traditional financial tools now available for institutional and
retail investors alike, Bitcoin’s accessibility and potential for
wider adoption are undoubtedly enhanced. Related Reading: Crypto
CEO Bets Big: ‘Perfect Storm’ Event To Slingshot Bitcoin To $1
Million However, the story doesn’t end there. The recent volatility
serves as a stark reminder of the inherent risks involved in the
cryptocurrency market. As the dust settles and the market digests
the ETF news, it will be fascinating to see whether this marks a
mere correction or a more fundamental shift in the trajectory of
Bitcoin’s price. One thing is clear: the saga of Bitcoin is far
from over. With new players entering the game and established
forces facing challenges, the next chapter promises to be just as
thrilling, if not more, than the one we’ve just witnessed. Featured
image from iStock
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