Bitcoin experienced a significant drop of 9%, falling below $42K, despite the general optimism surrounding Bitcoin ETFs. The price of Bitcoin plummeted to as low as $41,730 at 10:25 p.m. UTC on Friday, marking a 24-hour loss of approximately 9%. However, by 11:25 p.m. UTC, Bitcoin’s price had partially recovered to $42,850, resulting in a market capitalization of $840 billion.
The last time Bitcoin saw such low prices was on January 3. At that time, BTC prices began to rise as investors started to anticipate upcoming spot ETF approvals. The crypto market was down 5.3% over the 24 hours ending at 11:25 p.m. on Friday. Bitcoin (BTC) was down 7.7%, Solana (SOL) was down 9.2%, Avalanche (AVAX) was down 9.1%, Cardano was down 6.2%, XRP was down 5.5%, and Ethereum (ETH) and BNB were down 3.9%.
The cause of BTC’s price drop remains unclear. Spot Bitcoin ETFs have attracted significant demand, with over $4 billion in volume on the first day of trading, which should theoretically drive up Bitcoin prices. However, other factors are at play. SkyBridge Capital founder Anthony Scaramucci suggested that Bitcoin’s falling price may be due to sales of shares from Grayscale’s GBTC fund, which was converted to a spot Bitcoin ETF on Thursday. CNBC’s Ran Neuner similarly suggested that GBTC Bitcoin could re-enter the supply without being invested in Bitcoin ETFs.
James Seyffart from Bloomberg contested this explanation. He identified $95 billion of GBTC outflows on the first day of trading, calling this “just a fraction” of what many expected. Other negative developments may have also affected investor sentiment, indirectly impacting Bitcoin trading and supply. These events include Vanguard’s decision to exclude spot Bitcoin ETFs from its platform, U.S. lawmaker backlash against the SEC’s failure to secure its X account, and Senator Elizabeth Warren’s objection to the SEC’s ETF approval decision.
At the time of press, Bitcoin is ranked #1 by market cap and the BTC price is down 7.64% over the past 24 hours. BTC has a market capitalization of $839.79 billion with a 24-hour trading volume of $43.46 billion. The global cryptocurrency market is valued at $1.68 trillion with a 24-hour volume of $99.64 billion. Bitcoin dominance is currently at 50.14%.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | James Seyffart, Ran Neuner, Elizabeth Warren, Anthony Scaramucci |
| Companies | Bloomberg, SkyBridge Capital, Grayscale, CNBC, Vanguard |
| Currencies | Bitcoin, Solana, Cardano, Ethereum, Avalanche |
| Securities | None |
