Bitcoin, after grabbing headlines for soaring to $49,000 following the launch of spot Bitcoin ETFs on major U.S. exchanges, has experienced a notable pullback, settling at $41,825, as reported on Jan. 18 by CoinGecko.
The approval of spot Bitcoin ETFs on January 10 was considered a significant milestone for the cryptocurrency industry, marking a culmination of a 10-year journey since the first application was submitted. Despite the initial excitement, Bitcoin’s price has seen a decline, leading some to speculate that this might be the onset of a broader market pullback.
Even prior to the official announcement, the anticipation and hype surrounding the ETF approval, or lack thereof, had already influenced market pricing, including instances of false approval signals.
An analyst had previously noted technical chart signals indicating the potential for a substantial pullback, which could impact the broader market. This could be linked to sellers of Grayscale Bitcoin Trust (gBTC) attempting to exit positions following the recent surge in prices.
In a subsequent thread, CoinGecko pointed out that as of the current reporting, U.S. spot ETFs hold 632,000 BTC, constituting approximately 3% of the total Bitcoin supply. The total value of these ETFs is estimated at $27 billion as of January 17, with GBTC accounting for the majority of the Assets Under Management (AUM) at $25.3 billion.
As of the latest update, the price of Bitcoin has further declined to $41,349, marking a 3.1% decrease in the last day. The market remains dynamic, and investors are closely monitoring developments amidst the ongoing impact of spot Bitcoin ETFs on cryptocurrency valuations.
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