Bitcoin Edges Down Near $40,000 as Excitement Around ETF Cools

Explore the Crypto Rollercoaster: Bitcoin's Fluctuations and the Buzz Around ETFs Unveiled

Jan 22, 2024 - 08:40
Jan 22, 2024 - 08:40
 48
Bitcoin Edges Down Near $40,000 as Excitement Around ETF Cools
Bitcoin Edges Down Near $40,000 as Excitement Around ETF Cools

Bitcoin is teetering on the edge of the $40,000 mark, experiencing a slight dip on Monday alongside other cryptocurrencies, despite a surge in traditional markets. The premier virtual token saw a 3.4% decline, hitting $40,352 by 7:30 a.m. in New York—almost kissing its 2024 low recorded on Friday. Ether and smaller tokens, including Solana's SOL and Dogecoin, also faced drops of 4.1%, 3.9%, and 2.1%, respectively.

This downturn plays out against the backdrop of positive movements in global equities on Monday, with Europe's STOXX index rising by 0.5%, and Nasdaq 100 futures trading up by 0.7%. Investor optimism about the US economy persists ahead of Thursday's fourth-quarter GDP data.

Caroline Mauron, CEO of digital-asset derivatives liquidity provider Orbit Markets, remarked on the broader weakness in digital assets, attributing it to profit-taking by speculative traders despite the influx of new ETF investments. She emphasized, "While $40,000 may hold psychological significance, we don't anticipate a breakthrough triggering a cascade of liquidation; instead, we foresee support around $38,000."

The first week of trading for spot Bitcoin ETFs in the US witnessed an exchange of about $6.5 billion in shares, surpassing the turnover of ETFs tied to traditional assets.

Fadi Aboualfa, Head of Research at Copper Technologies Ltd., noted a slowdown in market sentiment post-ETF listings, with traders exhibiting caution as evidenced by a reduction in leverage use. He mused, "Things are gearing up to be quite interesting."

Also Read: Build Crypto Wealth: 3 Crypto Tokens That Could Turn You into a Millionaire!

iShook Opinion Curated by iShook Opinion and guided by Founder and CEO Beni E Rachmanov. Dive into valuable financial insights at ishookfinance.com for expert articles and latest news on finance.