Bitcoin (BTC) is taking a nosedive – and bringing with it major altcoins. The largest digital coin by market cap is now trading at $40,640, down nearly 4% over the past day, according to CoinGecko.
Over the past week, BTC has shed more than 6%. Last week, for the first time since 2021, the so-called “digital gold” asset was rapidly closing at $49,000 per coin.
BTC's decline comes after historic gains in spot BTC exchange-traded funds (ETFs). The popular investment vehicles are starting to trade in the U.S. after more than 10 years of resistance from regulators.
Some market observers had expected the price of BTC to rise as traditional investors now finally had exposure to the largest and oldest cryptocurrency. But others, like data firm CryptoQuant, have predicted a fall in asset prices. And so far, though, the ETF's success is roaring.
BTC's dip is coming as investors cash out their gains from the stimulus created before the ETF's approval.
Also, investors are quickly withdrawing money from Greyscale's Bitcoin Fund following its switch to ETFs. Traders are vacating their positions to take profits after they were previously locked in the fund, which is causing the fund manager to whip up BTC.
Other top 20 cryptocurrencies have been hit harder. Solana (SOL) has lost nearly 7% in the last 24 hours and is trading at around $89. The major coin has rallied in value since October and touched a high of $122 in December.
Elsewhere, Avalanche (AVAX), another big loser, fell more than 8% in one day. It is currently priced at around $31.50.
Cardano ( ADA ), the ninth-largest digital asset by market value, was trading at $0.47, down nearly 7%.
Edited by Andrew Hayward.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and are not financial, investment or other advice.
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