The price of Bitcoin experienced a significant drop to around $42,000, representing a nearly 10% decline, following the commencement of trading for spot Bitcoin exchange-traded funds (ETFs) in the United States. Bitcoin had reached a high of $46,000 and surged to a two-year peak of $49,000 just last week when the Bitcoin ETFs began trading in the U.S. Shares of the cryptocurrency exchange Coinbase also saw a 7.4% decline after the news of the Bitcoin ETFs.
Bitcoin had witnessed a substantial 80% rally since early October, but the recent drop raised questions about the sustainability of its upward momentum. The market dynamics and the anticipation surrounding ETFs showed signs of cooling down, according to Crypto research firm Swissblock.
The U.S. Securities and Exchange Commission (SEC) approved several spot Bitcoin ETFs last week, marking a significant development in the cryptocurrency space. The approval of these ETFs is considered a symbol of the market maturing and gaining support from regulatory authorities. Some analysts suggest that spot Bitcoin ETFs have the potential to become a $100 billion product.
(With Agency Inputs)
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