Bitcoin ETF

Bitcoin

April

Bitcoin (BTC) experienced a sharp decline, falling below $42,000 on Friday, marking a nearly 10% drop. This sell-off came in the aftermath of Thursday’s excitement surrounding the approval of bitcoin ETFs, which had initially propelled Bitcoin to a high of $46,000, reaching a two-year peak of $49,000. However, the surge in prices was short-lived. 
Coinbase (COIN), a major cryptocurrency exchange providing crucial custody services to many ETF issuers, saw its shares plummet by 7.4% on Friday. Bitcoin mining stocks, including Marathon Digital (MARA), Hut 8 (HUT), and Riot Platforms (RIOT), experienced declines of at least 10%, with Marathon being the most affected, suffering a 15% drop. 
These market downturns followed the launch of spot bitcoin exchange-traded funds (ETFs), representing a significant milestone for the crypto industry. The sell-off on Friday aligns with predictions made by research firm CryptoQuant, which anticipated a potential drop in Bitcoin’s price to as low as $32,000 after the ETF approval, considering it a “sell the news” event. 
Historically, other pivotal events in the crypto market, such as Coinbase’s stock market listing in April 2021 and the debut of ProShares’ futures-based bitcoin ETF (BITO) in October 2021, coincided with notable peaks in cryptocurrency prices, hinting at a possible cooling period ahead. 
As Bitcoin rallied by an impressive 80% since early October, reaching a two-year high, the latest decline raises questions about the sustainability of upward momentum. Swissblock analysts observed signs of the Bitcoin rally losing steam, particularly after reaching $49,000, with sellers becoming active above the $47,500 price level. The current dynamics suggest that Bitcoin’s recent performance has not met the expectations of some enthusiasts, emphasizing uncertainties about whether the market can maintain positive momentum.

Bitcoin (BTC) Dips Below $42,000, Coinbase and Miners Experience Declines as Bitcoin ETF Excitement Transforms Into a ‘Sell the News’ Sellof...

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