Bitcoin

Coin

The crypto industry experienced a significant setback on Thursday, with Bitcoin retreating to the $40,000 mark. According to Coin Metrics, Bitcoin last traded 3.6% lower at $41,167.14, reaching as low as $40,601.37, its lowest level since December 18. Ether, which had been resilient in recent days, also faced a downturn, dropping 3% to $2,448.41, leading the broader crypto market into a downward spiral. Bitcoin is facing a hard time in the market 
This downturn had a cascading effect on crypto-related stocks, as <a href="https://news.todayq.com/coinbase-asserts-tokens-are-not-securities-in-sec-case/" data-type="post" data-id="37270" target="_blank" rel="noreferrer noopener">Coinbase</a> and MicroStrategy ended the trading day down 7% and 2%, respectively. CleanSpark and Marathon Digital saw losses of over 6%, while Riot Platforms fell 5% and Iris Energy retreated by 8%. 
Julio Moreno, head of research at crypto data provider CryptoQuant, focused on the ongoing correction, stating, “We are still in the correction <a href="https://news.todayq.com/another-crypto-lending-services-platform-launch-amid-potential-bitcoin-etf-approval/" data-type="post" data-id="33258" target="_blank" rel="noreferrer noopener">post-ETF launch.</a>” He highlighted that short-term traders and significant Bitcoin holders were actively selling in the context of a risk-off attitude. Additionally, Moreno pointed out that unrealized profit margins have not fallen enough for sellers to be exhausted. 
The unrealized profit of short-term holders dropped to about 16% this week from 48% in December. However, Moreno suggested that it might need to fall below 0% to officially signal a bottom in Bitcoin’s price. He also noted a concerning trend, i.e., Bitcoin flows to derivative exchanges have stopped growing, a pattern seen in previous bear markets or price corrections. Is the BTC approval related? 
The recent decline in <a href="https://news.todayq.com/this-is-why-the-bitcoin-price-struggling-to-gain-momentum/" data-type="post" data-id="37239" target="_blank" rel="noreferrer noopener">Bitcoin</a>, about 12% since the SEC approved Bitcoin exchange-traded funds on January 10, has raised concerns among chart analysts. While the long-term uptrend remains intact, experts caution that there may be further declines ahead. Rob Ginsberg from Wolfe stated that this could be just the beginning of a disappointing first quarter for the cryptocurrency. 
Moreno, who had earlier projected that the post-ETF decision correction could pull Bitcoin to as low as $36,000. He highlighted that Bitcoin is currently down approximately 3% for the year, following an impressive 157% increase in value throughout 2023. 
The correction in the crypto market has sparked discussions about the potential factors contributing to the downturn. Analysts believe that short-term traders and major holders are capitalizing on the correction amid an overall risk-averse sentiment. The reluctance to exhaust selling activities could be attributed to unrealized profit margins that, while reduced, haven’t reached levels low enough to signal a market bottom. 
While the SEC’s approval of Bitcoin ETFs initially fueled optimism, the subsequent market movements have been less than stellar. The fact that Bitcoin flows to derivative exchanges have plateaued is seen as a red flag, historically associated with bear markets and corrections. 
As the correction continues, experts like Moreno caution against premature optimism. The cryptocurrency market, while resilient, remains subject to fluctuations, and stakeholders are advised to tread carefully in the coming weeks. As of the latest update, Bitcoin is valued at $41,464.11, marking a 3.01% decline in the past 24 hours, painting the market red. 
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Crypto bloodbath! Bitcoin hits $40K, why traders are cautiously selling

Todayq News

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