Bitcoin dropped below $40,000 for the first time since early December, experiencing a 5.3% decline to $39,556, following the recent launch of exchange-traded funds (ETFs) for Bitcoin, Bloomberg reports.
The overall trend in digital tokens has been downward in the new year, following a robust bull run that saw Bitcoin rise by almost 160% in 2023. The anticipation of the Securities and Exchange Commission (SEC) approving spot Bitcoin ETFs contributed to the previous rally, but the market started giving up gains after the SEC’s decision.
The first week of trading for spot Bitcoin ETFs in the US saw approximately $6.5 billion in shares change hands, higher than traditional asset ETFs. Despite positive performance in global equities, the weakness in digital assets is attributed to profit-taking by speculative traders and caution among investors.
