Bitcoin’s Value Declines as Cryptocurrency Investors Cash Out for Profits

Today, Bitcoin (BTC) experienced a minor retracement of one percent against the US dollar following a 0.7% decrease the previous day.

February’s latter half has seen the leading cryptocurrency temper its momentum after an impressive surge of 26% in the first two weeks of the month.

As a result of the recent upswing, market participants are securing profits. Despite this, bitcoin maintains a robust stance, up 21% since the beginning of the year and having more than doubled in valuation compared to the previous year.

One factor contributing to bitcoin’s strong performance is the significant interest in the newly introduced spot-bitcoin exchange-traded funds (ETFs).

According to recent figures from CoinShares, these bitcoin-centric ETFs attracted net inflows exceeding $2.4 billion last week, demonstrating a keen ongoing interest.

In contrast, the Grayscale Bitcoin Trust (GBTC), the largest such ETF, saw more than $600 million in withdrawals due in part to its hefty 1.5% management fee, prompting investors to look for alternatives.

As of this writing, bitcoin is trading at $51,350 against the US dollar.

Current Bitcoin Downturn – Sourced from: tradingview.com

In other cryptocurrency markets, Ethereum (ETH) took a 1.5% fall on Wednesday but has since shown signs of stabilization.

Approaching the $3,000 threshold, the ETH/USD pair is hovering just below this possible resistance level in the spot markets.

Altcoins such as Solana (SOL) and Avalanche (AVAX) are among the larger week-over-week decliners in the market, sliding 9% and 12%, respectively. On the other hand, BNB and Tron (TRX) have seen moderate gains.

The total market cap for all cryptocurrencies is currently at $1.96 trillion, with bitcoin’s market dominance at 52.9%.