Bitcoin Price Falls, Mining Stocks MARA, RIOT Fall 10%, Fueling ETF “Sell the News” Calls

Bitcoin (BTC) fell to nearly $43,000 on Friday, down 6% in intraday trading, while some Bitcoin mining stocks plunged over 10%, extending yesterday's decline following the highly anticipated spot Bitcoin ETF -Debut continued on Thursday.

The largest cryptocurrency by market capitalization fell as low as $43,200 during the U.S. trading session, down from around $46,000 this morning and 11% lower than Thursday's two-year peak of $49,000, CoinDesk data shows.

Cryptocurrency-related stocks also suffered significant declines, with miners Marathon Digital (MARA) and Hut 8 (HUT) both seeing declines of more than 10%. Riot Platforms (RIOT), another BTC miner, fell 8%. Coinbase, the crypto exchange that plays a key role in several spot Bitcoin ETFs, also saw its share price fall by 6%.

The decline came a day after the launch of the spot Bitcoin exchange-traded fund (ETF) and marked a major milestone for the industry. Bitcoin ETFs are traditional financial instruments that potentially make it easier for retail investors to participate in the price of Bitcoin.

Friday's price drops should come as no surprise; Research firm CryptoQuant predicted last month that Bitcoin would fall as low as $32,000 next month following an ETF approval, representing a “sell the news” event.

Notably, previous groundbreaking events such as the Coinbase listing in April 2021 and the debut of ProShares' futures-based Bitcoin ETF (BITO) in October 2021 occurred near a significant peak in crypto prices, potentially foreshadowing an impending price decline.

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