Hassan Maishera
TL;DR
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Bitcoin temporarily dropped below the $40k mark late on Monday as the selling pressure persists.
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It has now lost 20% of its value since the spot Bitcoin ETFs were approved.
BTC is Down 20% since Spot Bitcoin ETF Approval
Bitcoin, the world’s leading cryptocurrency by market cap, has been underperforming over the last two weeks. It lost more than 2% of its value on Monday, resulting in BTC temporarily dropping below the $40k level for the first time in weeks.
The selling pressure comes despite sizable inflows into the new spot exchange-traded funds (ETFs).
Eleven spot Bitcoin ETFs began trading on January 11, with Bitcoin reaching an annual high of $49,000 minutes after their launch. However, the rally was not sustained and Bitcoin’s price has been crashing since then.
It eventually dipped below the $40,000 psychological level late on Monday. This implies that Bitcoin is now at its weakest price since the beginning of December.
Analysts at 10x Research believe that in this quarter, any ETF-related rally would be fake-out and Bitcoin’s price will continue to decline into March. The analysts predict that $38k would be the bottom before the market resumes its uptrend. If the bearish momentum continues, Bitcoin could reach the $38k target set by 10x Research analysts faster than they had predicted.
Altcoins suffered heavy losses, with Ether down by more than 3% in the last 24 hours. At press time, the price of Ether stands at $2,346 per coin.
Tron’s TRX is up by more than 1% in the last 24 hours, outperforming the other coins in the top 20 list. With altcoins also underperforming, the total cryptocurrency market cap has dropped to the $1.58 trillion level, down by 2%.
