Bitcoin price plunges to $42K after spot ETF trading commences

SAN FRANCISCO: The price of Bitcoin plummeted to approximately $42,000, dropping nearly 10% after the launch of spot Bitcoin exchange-traded funds (ETFs) in the US.

Last week, Bitcoin reached a high of $46,000 and surged to a two-year high of $49,000 when bitcoin ETFs began trading in the US.

Following the bitcoin ETF news, shares of crypto exchange Coinbase dropped 7.4%, as reported by Coindesk.

Bitcoin has seen a significant 80% rally since early October.

According to Crypto research firm Swissblock, “The recent dynamics in bitcoin have not lived up to the expectations set by many bitcoin maximalists, with the asset failing to break the $50k mark, and the hype surrounding ETFs showing signs of cooling down.” The firm also stated, “The critical question now is whether the market can sustain upward momentum.”

In a previous prediction, research firm CryptoQuant foresaw Bitcoin falling to as low as $32,000 after an ETF approval.

Last week, the US Securities and Exchange Commission (SEC) approved a number of spot Bitcoin ETFs, marking the entrance of the world’s largest cryptocurrency into the global financial system.

The approval of spot Bitcoin exchange-traded funds (ETFs) in the US not only represents a maturing market but also signifies support from regulatory authorities, according to industry experts.

Analysts believe that spot Bitcoin ETFs have the potential to develop into a $100 billion product.