ALBAWABA - In the wake of regulatory approval for 11 cryptocurrency-backed Exchange-Traded Funds (ETFs) in the United States last week, Bitcoin finds itself grappling with a significant downturn.
The leading cryptocurrency, which had experienced a surge of optimism and nearly a 160% increase in the past year, has now plummeted to its lowest price point since the regulatory green light on January 10.
As of January 19, Bitcoin traded at $41,173 during the inaugural week of the ETFs. However, within the past 24 hours, it has witnessed a notable dip to $40,809, reflecting an approximate 11% loss. This decline comes on the heels of heightened expectations that the approval of these ETFs would fuel increased demand for the digital currency.
The market, opening the day with a modest 0.30% increase, now faces the challenge of navigating the aftermath of this notable drop in Bitcoin's value. Analysts and investors alike are closely monitoring the situation, assessing the potential implications for the broader cryptocurrency market.
Significant price volatility in Bitcoin and ETFs!
After receiving SEC approval and the introduction of the first spot Bitcoin exchange-traded funds (ETFs), profit-taking activities led Bitcoin to drop below $46,000 in the last week.
The debut of spot Bitcoin ETFs witnessed a trading volume surpassing $4.6 billion on the first trading day, with Grayscale Bitcoin Trust contributing $2.3 billion to the total volume.
When the inaugural Bitcoin futures fund commenced trading in 2021, it experienced a daily trading volume of $1 billion.
