Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
Home»EXCHANGE NEWS»Bitcoin price plummets below $42,000 after historic ETF launch, triggering $4.7 billion sell-off
EXCHANGE NEWS

Bitcoin price plummets below $42,000 after historic ETF launch, triggering $4.7 billion sell-off

By Crypto FlexsJanuary 15, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Bitcoin price plummets below ,000 after historic ETF launch, triggering .7 billion sell-off
Share
Facebook Twitter LinkedIn Pinterest Email

The launch of the first spot Bitcoin exchange-traded fund (ETF) in the United States last week was a watershed moment for the cryptocurrency industry. However, shortly after the ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) began trading on Thursday, Bitcoin underwent a sharp sell-off, plummeting from a two-year high of $49,000 to $41,500 over the weekend.


key point

  • The launch of the first spot Bitcoin ETF in the United States was a “sell the news” event, with Bitcoin prices initially surging on the news and then falling.
  • The price of Bitcoin hit a two-year high of $49,000 around the time the ETF was launched, before falling to $41,500.
  • Analysts say the $40,000 level is an important near-term support level to watch for Bitcoin.
  • The ETF launch and subsequent sell-off caused a surge in Bitcoin volatility, resulting in the liquidation of approximately $112 million worth of long positions.
  • Even after the plunge, analysts are generally optimistic about Bitcoin’s long-term prospects, considering increased institutional demand.

The extreme volatility highlights why many analysts have warned that the ETF launch could end up being a “sell the news” event if Bitcoin’s rapid rise this year has already been priced in. The anticipation built ahead of the ETF led to a 40% price surge in the first two weeks of 2024, supporting these concerns.

“Sell the news” refers to the practice in which asset prices often enter a highly anticipated event and then immediately plummet as traders take quick profits. The ETF hype has further intensified this dynamic.

Bitcoin’s plunge led to the liquidation of about $112 million worth of leveraged long positions on Thursday, sending the price plummeting from $49,000 to $46,000 in a matter of minutes. Volatility subsided on Friday but flared up again on Saturday. The price dipped below $44,000 on Saturday morning, and a sudden crash on Saturday night took Bitcoin to nearly $41,500, its lowest since mid-December.

Analysts say that while painful for speculators on the wrong side of the trade, the correction was likely inevitable given that Bitcoin, which led to the ETF’s launch, has surged 150% in the past year and 57% in 2023 alone. Most technical measures have resulted in excessive parabolic rises.

“Given Bitcoin price performance of more than 150% compared to 2023, a correction to at least $40,000 per Bitcoin would be within the range of a typical correction,” said Alex Kuptsikevich, an analyst at trading firm FxPro.

Kuptsikevich and others believe $40,000 could represent the next major support level if prices continue to fall this week. This level could encourage new buying from long-term investors who have missed out on Bitcoin’s rally over the past year.

So while the ETF launch sparked a frenzy of speculative trading and leverage that has proven unsustainable, analysts say demand from institutional investors for direct exposure to Bitcoin remains strong despite recent volatility. The ability to gain exposure through regulated ETFs traded on major stock exchanges makes Bitcoin much more accessible to pensions, endowments, retirement accounts and other large investors who were previously restricted from purchasing the cryptocurrency directly. .

Falling U.S. Treasury yields and optimism that inflation has potentially peaked could pave the way for the Federal Reserve to cut interest rates by early 2025, according to Bitbank analysts, and despite the post-ETF hangover, Bitcoin prices over the long term They say they can support .

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Will Cardano (ADA) step back and push the bear back low?

August 22, 2025

Ether Lee’s price retreat, a market for watching $ 4,200 for the next movement

August 19, 2025

Bitcoin Price is a 4% slide after a strong rally?

August 16, 2025
Add A Comment

Comments are closed.

Recent Posts

BitMine Immersion (BMNR) Reigns as the #1 ETH Treasury in the World, 2nd Largest Crypto Treasury Globally and the 20th Most Liquid US Stock, Trading $2.8 Billion per Day on Average

August 25, 2025

Gamdom Launches Next-Level Sportsbook Experience

August 25, 2025

NE-YO Partners With Neura To Transform Entertainment With Emotional AI

August 25, 2025

Mine BTC Daily With Okalio Mining, Allowing You To Earn Steady Profits Without Investing In Equipment!

August 25, 2025

HKGAI And FLock.io Partner To Advance Decentralised AI For Government Efficiency

August 25, 2025

BNB chain overtakes polygons with NFT sales on the 7th.

August 25, 2025

Distributed financial introduction

August 24, 2025

SANTIMENT says that Fed Rate Talk Signals Signals problems arise.

August 24, 2025

Ethereum Breaks $4,750 Support As Pepeto Crosses $6,287,248 In Presale Funding

August 23, 2025

Builders, Investors, And Developers Meet Again To Shape The Web Space

August 23, 2025

Bitcoin News Today: Ether (ETH) is 5K $ 5K and BTC Eyes is recorded as Powell Sparks Rally. DAT transaction risk: Be careful with asset managers

August 23, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

BitMine Immersion (BMNR) Reigns as the #1 ETH Treasury in the World, 2nd Largest Crypto Treasury Globally and the 20th Most Liquid US Stock, Trading $2.8 Billion per Day on Average

August 25, 2025

Gamdom Launches Next-Level Sportsbook Experience

August 25, 2025

NE-YO Partners With Neura To Transform Entertainment With Emotional AI

August 25, 2025
Most Popular

Bitcoin Price Rise to $70K, XRP, KAS, STX, JASMY to Attract Buyers

July 29, 2024

NVIDIA AI Enterprise is expanded to H200 NVL GPU support.

February 25, 2025

Exchange supply hits lowest level since 2017

December 9, 2023
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.