The launch of the veryfirst area bitcoin exchange-traded funds (ETFs) in the United States last week was a watershed minute for the cryptocurrency market. Yet soon after the ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) started trading on Thursday, bitcoin seen a sharp sell-off, plunging from a 2-year high above $49,000 down to $41,500 over the weekend.
Keypoints
- The launch of the veryfirst area bitcoin ETFs in the UnitedStates was a “sell the news” occasion, with the bitcoin cost dropping after atfirst rising on the news
- The bitcoin rate plunged to as low as $41,500 after striking a 2-year high of $49,000 around the ETF launch
- Analysts state the $40,000 level is an crucial near-term assistance to watch for bitcoin
- Bitcoin volatility increased around the ETF launch and subsequent sell-off, liquidating about $112 million worth of long positions
- Even after the plunge, experts stay broadly bullish on bitcoin’s long-lasting outlook provided increasing institutional need
The extreme volatility highlights why lotsof experts had cautioned that the ETF launch might end up being a “sell the news” occasion if the approval was currently priced in to bitcoin’s fast gains this year. The 40% rate rise in the veryfirst 2 weeks of 2024, as anticipation constructed ahead of the ETFs, supported those worries.
“Sell the news” refers to how possession costs typically run-up going into a extremely preparedfor occasion, just