The Bitcoin price (BTC) a lost 20% of its value since the approval of the first spot ETFs in the United States and is currently trading below 40,000 dollars. The analysts were betting on a decline following the event.
Overnight, the price of Bitcoin hit its lowest level since December at around $39,500 before rebounding slightly, still down 3.2% over the last 24 hours.
Last week, a number of analysts suggested that the Bitcoin price could slip below $40,000 as the excitement around spot ETFs subsided.
We’re seeing weakness across all digital assets, as new inflows from ETFs have so far failed to offset profit-taking by traders speculating on positions set up prior to the announcement,” commented Caroline Mauron, director of Orbit Markets, estimating that BTC could continue to fall towards the $38,000 support level.
Bitcoin cash funds approved in early January in the US have since recorded inflows totaling just over $4 billion, according to CoinShares.
The majority of other cryptocurrencies are also down over the past 24 hours. Ethereum (ETH) lost 3.8% to around $2,230. Only a few tokens seem to be holding up, such as SUI, KAVA and CHZ.
The decline on the crypto market contrasts with the traditional markets. The S&P 500 and Nasdaq closed higher on Monday. Bitcoin’s correlation with more conventional assets fell sharply in 2023.
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