The debut of the first spot Bitcoin exchange-traded funds (ETFs) has triggered a selling spree, causing Bitcoin and other cryptocurrencies to slide lower. This development highlights the “sell the news” dynamic that often follows long-awaited regulatory approvals.
Over the past 24 hours, the price of Bitcoin has fallen by 2.5% to $41,350, slipping below the $41,000 mark in earlier trading sessions. In the lead-up to the introduction of the first spot Bitcoin ETFs in the U.S., the largest cryptocurrency briefly surged above $48,000. However, it has since experienced a significant decline from these peak levels, representing the highest point reached since early 2022.
Despite not witnessing a drastic decline, Bitcoin continues to grapple with the aftermath of the spot ETF approvals. The price currently sits more than 15% below its recent highs, breaching the previously stable $42,000 level that held for the past month. Craig Erlam, an analyst at broker Oanda, noted that the crucial level to watch now is $40,000. A break below this mark would be a major psychological blow and potentially signal a more substantial post-ETF correction.
In addition to Bitcoin’s decline, Ether—the second-largest cryptocurrency—also experienced a 1% drop to $2,480. Smaller tokens, including Cardano and Polygon, registered weaker performances as well, with declines of 3% and 2% respectively. Even memecoins such as Dogecoin and Shiba Inu incurred losses of 2% each.