On Tuesday, Bitcoin experienced a continued decline, dropping further below $40,000 and reaching its lowest level since the beginning of December.
The cryptocurrency’s price was down nearly 2%, settling at $39,362.00. Although it slightly recovered from earlier losses, it still added to the 4% decline observed the previous day.
Bitcoin has seen a notable decrease of about 19% from its post-ETF approval peak of $49,048, according to FactSet.
Some analysts attribute this decline to short-term selling pressure, particularly from exits from the Grayscale Bitcoin Trust (GBTC), which has witnessed approximately $2 billion in outflows since January 19.
In contrast, BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund have each experienced more than $1 billion in inflow, CNBC reported.
Investors have been patiently navigating through this anticipated correction, widely foreseen as a “sell the news” occurrence following the extensively communicated approval of bitcoin ETFs.
Anticipation surrounding this event started last summer and gained momentum in August, contributing to a gradual rise in the bitcoin price.
As of now, traders find themselves holding substantial unrealized profits, and analysts suggest that there is still a considerable distance for bitcoin’s price to decline before any potential reversal and upward movement.
Written by B.C. Begley
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B.C. Begley 