SAN FRANCISCO: The price of Bitcoin nosedived to around $42,000, plunging almost 10 per cent, after the spot Bitcoin exchange-traded funds (ETFs) started trading in the US.
Bitcoin reached a high of $46,000 last week and surged to a two-year high of $49,000 last week, when bitcoin ETFs began trading in the US.
Shares of crypto exchange Coinbase tumbled 7.4 per cent after the bitcoin ETF news, reports Coindesk.
Bitcoin has posted a massive 80 per cent rally since early October.
"The recent dynamics in bitcoin have not lived up to the expectations set by many bitcoin maximalists, with the asset failing to break the $50k mark, and the hype surrounding ETFs showing signs of cooling down,” according to Crypto research firm Swissblock.
“The critical question now is whether the market can sustain upward momentum,” it said in its market report.
Research firm CryptoQuant predicted last month that Bitcoin would fall to as low as $32,000 after an ETF approval.
The US Securities and Exchange Commission (SEC) last week approved a number of spot Bitcoin ETFs and with the decision, the world's largest cryptocurrency joined the global financial system.
The approval of spot Bitcoin exchange-traded funds (ETFs) in the US not only symbolises a maturing market but also signifies support from regulatory authorities, according to industry experts.
Spot Bitcoin ETFs have the potential to develop into a $100 billion product, according to some analysts.