Cryptocurrencies fell on Thursday, with Bitcoin falling to $40,000.
Bitcoin was last trading down 3.6% to $41,167.14, according to Coin Metrics. Earlier, it fell to $40,601.37, its lowest level since December 18. Ethereum, which has received a boost in recent days while Bitcoin has been struggling, also declined. It decreased in recent trading by 3% to $2,448.41. The rest of the cryptocurrency market has been dragged along with them on a massive scale.
Bitcoin's movement has affected cryptocurrency-related stocks as well. Coinbase and Microstrategy ended the trading day down 7% and 2%, respectively. Miner CleanSpark and Marathon Digital lost more than 6% each, while Riot Platforms fell 5% and Iris Energy fell 8%.
“We are still in the correction phase after the launch of the ETF,” said Julio Moreno, head of research at cryptocurrency data provider CryptoQuant.
“Short-term traders and large Bitcoin holders are still selling heavily in a risk-off context,” he added. “In addition, unrealized profit margins have not fallen enough to exhaust sellers.”
See chart…
Bitcoin slides back to the $40,000 level
Moreno added that unrealized gains for short-term shareholders fell to about 16% this week from 48% in December, but may need to fall below 0% to officially reach a bottom for the Bitcoin price.
Moreover, bitcoin flows to derivatives exchanges have stopped growing, he said — a trend that previously signaled bear markets or price corrections.
Bitcoin is now down about 12% since the US Securities and Exchange Commission gave the green light for Bitcoin exchange-traded funds to begin trading in the US on January 10. Chart analysts have warned that although its long-term uptrend remains intact, it is likely to have further upside. To fall or fall. That could be just the beginning of a disappointing first quarter of the year, Wolff's Rob Ginsberg said.
Moreno previously predicted that a post-ETF decision correction could send Bitcoin falling to as low as $36,000.
The cryptocurrency is down about 3% this year. It ended 2023 with an increase of 157%.
— CNBC's Gina Francola contributed reporting
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