Bitcoin and Cryptocurrencies Continue to Slide Amidst Debut of Spot Bitcoin ETFs
Bitcoin and other cryptocurrencies experienced a downward trend on Friday as selling persisted following the launch of the first spot Bitcoin exchange-traded funds (ETFs). This serves as further evidence that the highly anticipated regulatory approval has resulted in a "sell the news" dynamic.
Over the past 24 hours, the price of Bitcoin dropped by 2.5% to reach $41,350, slipping below the $41,000 mark during earlier trading sessions. Leading up to the introduction of the first spot Bitcoin ETFs in the United States, the largest cryptocurrency witnessed surges above $48,000. However, it has since retreated from these peaks, which represent the highest levels for Bitcoin since early 2022.
In light of the spot ETF approvals, Bitcoin continues to face challenges. Although there hasn't been a significant decline, the price remains over 15% below its highs and has broken below the $42,000 threshold that held steady over the past month. Craig Erlam, an analyst at broker Oanda, stated, "The key level now could be $40,000—a break below which would deliver a significant psychological blow and potentially indicate a more substantial post-ETF correction."
While Bitcoin experiences this decline, other cryptocurrencies are also feeling the pressure. Ether, the second-largest crypto, saw a 1% decrease to reach $2,480. Smaller tokens and altcoins, including Cardano and Polygon, experienced weakness as well, with respective losses of 3% and 2%. Memecoins like Dogecoin and Shiba Inu were also in the red, shedding 2% each.
As the market adjusts to the debut of spot Bitcoin ETFs, industry experts closely monitor these developments to better understand the future trajectory of cryptocurrencies.
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