On the Bitstamp platform, the price of Bitcoin fell by more than 7%, hitting an intraday low of $45,644.
This huge decline comes after a spike in enthusiasm that saw Bitcoin reach its highest level since early January, $49,048.
The market’s earlier euphoria is challenged by the unexpected downturn, which coincides with the fervour around the introduction of Bitcoin exchange-traded funds (ETFs).
Massive trading volumes
The recent adoption of a Bitcoin ETF is just one example of how the cryptocurrency market frequently responds dramatically to news events. Specifically, the recently introduced spot Bitcoin ETFs have seen tremendous interest, with a $1.3 billion total trading volume.
When the Bitcoin Strategy ETF (BITO) and the Grayscale Bitcoin Trust (GBTC) are taken into account, this amount rises to $3.5 billion.
Although the approval of the ETF didn’t first appear to be a sell-the-news story, the largest cryptocurrency thereafter saw a sharp decline.
Renowned industry analyst Eric Balchunas offered his assessment of the circumstances, saying, “Ok, the news sellers seemed to have woken up… not sure if that’s all of what this is though, there’s likely a lot of cross-currents right now with all these launches and market makers.”
Vanguard snubs Bitcoin ETFs
Major investment management firm Vanguard has adopted a remarkably different stance in the midst of this turbulent time by removing all Bitcoin ETFs from their website.
According to reports, Vanguard is restricting client access to these ETFs that have received SEC approval and only allowing sales of current holdings.
This choice is consistent with Vanguard’s cautious approach to investing. The price reduction may have been influenced by the snub.
