Bitcoin price attempted a recovery wave above $46,200 but struggled. BTC is currently falling towards the $43,000 support and is trading at $43,300 which represents a 7% drop on the day. In the last month bitcoin is still up 3.6%.
Likewise, most major altcoins are correcting gains. ETH reached close to $1,720 and started a downside correction below $1,600. XRP faced sellers near $0.62 is now down 5%. ADA is struggling to remain above the $0.55 support zone. Solana is trading at $95.21 with almost a 6% drop.
In this article, we will discuss:
Why is Bitcoin falling today?
This scenario comes one day after the launch of spot bitcoin exchange-traded funds (ETFs), a significant milestone for the industry. Bitcoin ETFs offer a more affordable way for retail investors to gain exposure to the price of Bitcoin.
However, the drop in Bitcoin's price on Friday may have been anticipated; Research firm CryptoQuant had predicted a drop to $32,000 following the ETF's approval, in a classic case of “news selling.”
ETF the Bitcoin Spot
Initial data indicates that Bitwise's Bitcoin ETF (BITB) led the flow of capital among newly launched products, which began trading last Thursday. This movement was closely followed by the Fidelity fund (FBTC), as reported by a post from BitMex Research X, which cited information from Bloomberg.
ETF Day 1 Flow – UPDATE
Finally the GBTC number is out. GBTC has $95m of outflow
Total net flow for the day into the new ETFs was $625.8m
Bitwise was the victor for day 1 pic.twitter.com/HFsqhjtvEt
— BitMEX Research (@BitMEXResearch) January 12, 2024
The scenario for issuers of these products is still being defined. As of Friday's market open, most issuers had shared only preliminary data on inflows. Eric Balchunas, ETF analyst at Bloomberg Intelligence, highlighted in an X post that possible delays could occur until Friday evening. On the other hand, James Butterfill, head of research at digital asset manager CoinShares, expressed in an email that the full picture may only be visible early next week.
In the rush for funds, Bitwise's BITB raised an impressive $238 million in net assets on its first day. Meanwhile, Fidelity's FBTC attracted $227 million. In an interesting counterpoint, Grayscale's GBTC, which operated as a closed fund without redemptions until then, saw outflows of US$95 million, a number lower than expected by some analysts.
BlackRock's IBIT, widely anticipated to be a top contender among recently issued ETFs due to the asset manager's weight and size, saw $110 million in inflows. Interestingly, on Thursday, it had the second highest first-day trading volume among bitcoin ETFs. However, data from the fund's website shows that IBIT held $120 million in bitcoin (BTC) and an additional $112 million in cash as of Thursday. Balchunas noted that some of this inflow could be reflected in Friday's data.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/bitcoin-caindo-hoje-perto-de-us-43-000/
