The decline in the Bitcoin price to $41,500, a 3.5% drop in prices of major altcoins, and the overall market downturn are attributed by analysts to the low interest in recently launched spot Bitcoin ETFs in the USA. In the first two days after launch, the trading volume of such funds reached $3.1 billion. Over the past day, the volume of margin position liquidations by traders amounted to $373.6 million, with 80% of this amount directed towards buying. This also contributed to the decline in the price of cryptocurrency.
Despite the short-term bear market pressure, most analysts continue to assess the medium-term prospects for Bitcoin (BTC) optimistically. This may be facilitated by institutional investments in ETFs, even despite the not-so-high initial interest in this process, as well as the upcoming Bitcoin halving, which will take place in 3 months. All of this will lead to a reduction in the overall number of available Bitcoins on the market and, consequently, an increase in their price.
As of the time of writing this text, the price of the first cryptocurrency, Bitcoin, has slightly recovered and is around $43,000. An extensive review of the impact of spot ETF launches on Bitcoin and altcoin prices was previously published on Bits.Media.
