Bitcoin, the largest cryptocurrency by market capitalization, continued its decline from a two-year high as traders assessed the results of the much-hyped first day of trading for exchange-traded funds that track the cryptocurrency.
Bitcoin, the largest cryptocurrency by market capitalization, continued its decline from a two-year high as traders assessed the results of the much-hyped first day of trading for exchange-traded funds that track the cryptocurrency.
In trading on Friday, BTC fell as much as 10% to a low of $41,444. After almost a dozen ETFs began trading on Thursday, Bitcoin momentarily surpassed $49,000 for the first time since December 2021.
Losses continued in early trading on Saturday, with BTC falling 7.47% in the previous 24 hours to $42,715.
According to SkyBridge Capital founder Anthony ScaramucciSales of Grayscale Bitcoin Trust shares could have partly contributed to Bitcoin’s decline since the start of Bitcoin ETF trading.
On Friday, the share prices of all Bitcoin ETFs also fell. GBTC, which has been in operation since 2013, had volume of $2.3 billion on Thursday, the largest first-day turnover for an ETF.
Scaramucci added that the FTX bankruptcy crowd is also “unloading” assets amid growing market activity around the ETF announcement, resulting in very significant sales volume for Bitcoin.
What analysts think
According to the cryptanalyst Ali, Bitcoin was rejected at $48,000 from the upper boundary of a parallel channel shown on its price chart. If BTC continues to fall, it could reach the lower boundary of the channel at $34,000 before bouncing to the upper boundary at $57,000.
Gareth Soloway, a cryptocurrency trader, believes that the first big test for Bitcoin is currently between $42,000 and $43,000. If this crucial level holds, BTC may start to rise again. On the other hand, if it breaks, $38,000 could be at stake.
Despite the current price decline, cryptocurrency bulls believe Bitcoin could reach $100,000 or even $250,000 this year, thanks to the approval of the first US spot Bitcoin exchange-traded fund by part of the Securities and Exchange Commission (SEC).
