After weeks of a certain calm, and also after the boom generated among investors by the approval of a Bitcoin ETF in the United States, the most famous cryptocurrency has lost its bullish path and this week fell below $40,000, price considered in the “support” market.
Although the price of bitcoin is characterized by its volatility, This time the collapse was surprising in its speed. On Tuesday its price collapsed by 5.9% and approached $38,500, while since the beginning of the year this cryptocurrency has accumulated a loss in value of 8.5%. He the bearish movement drags the entire cryptocurrency market downwards: Ethereum, to name a few, deepens its decline and loses more than 7%.
Enough It was the launch of Bitcoin ETFs that prompted profit-taking and unleashed a new wave of sales. In the days preceding the approval by the SEC, the US regulatory authority, of this method of investing in bitcoin through the stock market, expectations had “inflated” the price, which at the beginning of the month had reached 49,000 dollars .
That old food market maxim has been fulfilled. “buy on rumors, sell on news.” For about three months, investors who turned to sell-offs took the opportunity to “take profits”, and this would be, according to market experts, the longest period of selling motivated by a higher-than-expected price in the history of this cryptocurrency. .
Exactly one year ago, bitcoin was trading in the $23,000 area and this growth of over 100% in 12 months was partly what drove the correction. Some experts argue that if the cryptocurrency could achieve this goal stay close to $40,000 As the weeks pass, for-profit sales may cease.
The approval of exchange-traded Bitcoin ETFs by the U.S. Securities and Exchange Commission on January 10 brought nine new funds to the market. GBTC was converted from a trust. Since launch, newly issued Bitcoin ETFs have seen inflows of $4.1 billion. BlackRock Inc. and Fidelity Investments have led the push, with their IBIT and FBTC funds capturing about two-thirds of all inflows since the launch of the nine new funds, according to data compiled by the news agency. Bloomberg.
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Source: Clarin
