Bitcoin fell below $40,000 for the first time since early December as the price crashed. Enthusiasm for the launch of exchange-traded funds Those who invest directly in the largest cryptocurrency.
The digital currency fell 5.3 percent to $39,556 at 2:42 p.m. New York on Monday, its lowest level since Dec. 4. Smaller cryptocurrencies such as Ether and Solana fell 6.7% and 9.3% respectively.
Fall after meteoric rise
Following an intense bull run that saw Bitcoin surge nearly 160% in 2023, outperforming gold and stocks, digital tokens have mostly trended downwards this year. Much of this rise was attributed to the expectation that the Securities and Exchange Commission would approve this decision. bitcoin ETF launch dot in usa He did this on January 10.
The declines contrast sharply with the positive performance in other markets. Global stocks rally this monday. Europe’s STOXX index rose 0.7%, while the Nasdaq 100 gained 0.2% as investors remained on hold. Optimistic about the resilience of the US economy Ahead of fourth-quarter GDP data scheduled for Thursday.
Collection of benefits
“We are observing weakness in all digital assets“As new ETF inflows have so far failed to offset the profits speculative traders made from positions placed before the announcement,” he said. Caroline Mauron, CEO of digital asset derivatives liquidity provider Orbit Markets. “While $40,000 is an important psychological level, we do not expect a breakout here that would trigger a selling wave and we see the next support level around $38,000.”
It’s the first week of spot Bitcoin ETFs trading in the US. Approximately $6.5 billion worth of shares changed handsThat’s far more than what’s recorded in ETFs linked to traditional assets, according to a Friday note from Bloomberg Intelligence.
“Market sentiment has slowed following the ETF IPO and leverage continues to trend downward, indicating investors are cautiously opening positions,” he said in an email. Fadi AbualfaCopper Technologies Ltd. “Things are going very well,” the head of research added. “Things are shaping up to be very interesting.”