Following the expected launch of spot Bitcoin ETFs and expectations of a price increase, Bitcoin saw a decline to $41,825, according to a Jan. 18 post on CoinGecko.
Bitcoin (BTC) initially made headlines for hitting $49,000 for the first time since December 2021 as spot BTC ETF trading opened on major US exchanges. However, the price of the world's largest cryptocurrency has since fallen, which some believe could mark the start of a larger decline.
The approval of spot Bitcoin ETFs on January 10 was seen as a major step forward for the industry since the first application was submitted ten years ago. However, even before the announcement, the hype surrounding the approval or lack thereof had already had an impact on market prices, including false approval.
However, a day earlier, an analyst pointed out that technical charts were showing signals of a massive pullback that could push the rest of the market into the red, which could potentially be attributed to Grayscale Bitcoin Trust (gBTC) sellers trying to to exit their business positions after the last pump.
In a follow-up thread, CoinGecko highlights that at the time of writing, 632,000 BTC are held in US spot ETFs, representing about 3% of the cryptocurrency's total supply. The study shows that these ETFs hold $27 billion as of January 17th. GBTC holds the majority of assets under management (AUM) at $25.3 billion.
At the time of writing, the price of BTC has fallen further to $41,349, down 3.1% in the last day.
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