The market value of Bitcoin, the biggest cryptocurrency, has dropped further from its two-year peak as investors assess the outcomes of the much-awaited first day of trading for exchange-traded funds that follow the virtual currency.
Bitcoin fell as much as 10% in Friday’s session, reaching as low as $41,444. For the first time since December 2021, Bitcoin briefly crossed $49,000 as nearly a dozen ETFs started trading on Thursday.
Early Saturday trading saw the losses, with BTC down 7.47% over the previous day to $42,715.
https://x.com/WuBlockchain/status/1745982046680551579?s=20
Anthony Scaramucci, the founder of SkyBridge Capital, claims that the decline in Bitcoin since the start of Bitcoin ETF trading may have been partially caused by sales of Grayscale Bitcoin Trust shares.
All of the Bitcoin ETFs’ share values dropped on Friday as well. With $2.3 billion in trading on Thursday, GBTC—which has been in existence since 2013—had the highest first-day turnover of any ETF.
In addition, Scaramucci said that the FTX bankruptcy estate is “unloading” assets in response to the growing market activity around the ETF announcement, which has caused a large number of Bitcoin sales.
What analysts think
On its price chart, Bitcoin’s price was rejected at $48,000 from the top limit of a parallel channel, according to cryptocurrency expert Ali. Should Bitcoin drop further, it may hit the bottom border of the channel at $34,000 before rising to the higher boundary at $57,000.
Crypto trader Gareth Soloway thinks that the current price of $42,000–$43,000 is where Bitcoin will face its first major test. Bitcoin may start to soar once again if this critical level holds. But in the event that it breaks, $38,000 may be at stake.
Bulls in the cryptocurrency space predict that, despite the recent decline in price, Bitcoin might reach $100,000 or even $250,000 this year, citing the Securities and Exchange Commission’s (SEC) approval of the first-ever U.S. spot exchange-traded fund.
