The price of Bitcoin has plummeted by more than 7%, reaching an intraday low of $45,644 on the Bitstamp exchange.
The price of Bitcoin has plummeted by more than 7%, reaching an intraday low of $45,644 on the Bitstamp exchange.
This major drop comes after a period of great enthusiasm, during which Bitcoin rose to $49,048, its highest level since early January.
The drop comes unexpectedly amid the fervor surrounding the recent approval of Bitcoin exchange-traded funds (ETFs), challenging previous market optimism.
Large trading volumes
The cryptocurrency market often reacts vividly to news, and the recent Bitcoin ETF approvals are no exception. In particular, the recently launched Bitcoin spot ETFs have seen massive demand, with a combined trading volume of $1.3 billion.
This figure increases to $3.5 billion if the Grayscale Bitcoin Trust (GBTC) and the Bitcoin Strategy ETF (BITO) are included.
At first, it seemed like the ETF approval was a non-news selling event, but the largest cryptocurrency then posted a dramatic drop.
Eric Balchunas, a leading industry expert, commented on the situation: “Well, the news vendors seemed to have woken up… I’m not sure if that’s all, there’s probably a lot of cross-currents going on right now with all these releases.” and market makers.”
Vanguard snubs Bitcoin ETFs
Amid this tumultuous period, Vanguard, a major investment management firm, took a strikingly different approach by banning all Bitcoin ETFs from its platform.
Reports indicate that Vanguard is blocking client access to these SEC-approved ETFs, limiting transactions to selling only existing holdings.
This decision aligns with Vanguard’s conservative investment philosophy. The snub could have contributed to the price decline.
