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Bitcoin, the largest cryptocurrency by market capitalization, continued its slide from a two-year high as traders assessed the results of the much-hyped first day of trading for exchange-traded funds tracking the cryptocurrency.
In trading on Friday, BTC plunged as much as 10% to as low as $41,444. After nearly a dozen ETFs began trading on Thursday, Bitcoin temporarily topped $49,000 for the first time since December 2021.
Losses continued in early Saturday trading, with BTC falling 7.47% to $42,715 in the last 24 hours.
According to Anthony Scaramucci, founder of SkyBridge Capital, sales of Grayscale Bitcoin Trust shares may have partially contributed to Bitcoin's decline since Bitcoin ETFs began trading.
On Friday, the stock prices of all Bitcoin ETFs also fell. GBTC, which has been in existence since 2013, generated $2.3 billion in volume on Thursday, the highest first-day volume for an ETF.
Scaramucci added that the FTX bankruptcy estate is also “unloading” assets amid increased market activity related to the ETF announcement, resulting in very significant selling volume for Bitcoin.
What analysts think
According to crypto analyst Ali, Bitcoin was rejected at $48,000 by the upper limit of a parallel channel shown on its price chart. If BTC continues to fall, it could reach the lower boundary of the channel at $34,000 before falling back to the upper boundary at $57,000.
Gareth Soloway, a crypto trader, believes that the first big test for Bitcoin is currently at $42,000 to $43,000. If this crucial level is held, BTC could rise again. However, if it breaks, $38,000 could be in play.
Despite the current price decline, cryptocurrency bulls believe that Bitcoin could reach $100,000 or even $250,000 this year based on the approval of the first US spot Bitcoin exchange-traded fund by the Securities and Exchange Commission (SEC).
About the author
Tomiwabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducts comprehensive price analysis, and shares predictions on estimated market trends. Tomiwabold graduated from the University of Lagos.
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