Bitcoin has fallen almost 20% since the initial launch of the first BTC spot ETF on January 11th.
On January 23rd, Bitcoin prices tumbled below $40,000, hitting an intraday low of $39,494 during the Tuesday morning Asian trading session.
Despite the spike to $49,021 on the day ETFs went live – a level not seen in a while – Bitcoin traded as low as $39,990 as of 6:00 AM Tuesday in London. This marks an 18% drop from that intraday peak.
On January 11th, nine new Bitcoin funds started trading in the US. Simultaneously, the Grayscale Bitcoin Trust (GBTC) transitioned from a closed-ended structure to an ETF.
During the first six days, the group attracted a net inflow of $1.2 billion, as reported by a senior ETF Analyst at Bloomberg Intelligence.
Hopes were obviously very high with the approval of the product by the SEC, with some analysts predicting an all-time high (ATH). However, with the coin dropping below $40,000, we are wondering whether this is an indication of a countereffect on performance.
BTC is currently trading at $39,706.
Bitcoin has been heavily challenged by tough macro conditions over the past two weeks, which manifested through rallying rates and a strengthening dollar.
The digital currency surged almost 160% last year, outperforming traditional assets like stocks. A good chunk of people had speculated that ETFs would catalyse wider adoption of the cryptocurrency by institutional and individual investors.
BTC has been experiencing a noticeable decline in its value since the beginning of 2024. More specifically, the token’s performance is lagging behind and not keeping pace with broader international financial markets.
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