In early Tuesday trading, Bitcoin descended below the $40,000 threshold, marking its first dip beneath this level since early December.
The premier cryptocurrency experienced a 6.8% drop over the past week and a 9.5% decline over the month, as enthusiasm waned following the US Securities and Exchange Commission’s approval of 11 spot bitcoin exchange-traded funds (ETFs).
As of the time of this report, BTC/USD had declined by 4.32% over 24 hours, settling at $38,978.9. Investors have offloaded billions of dollars worth of the largest among these ETFs, Grayscale Bitcoin Trust (GBTC). Much of this selling activity can be attributed to the bankruptcy estate of Sam Bankman-Fried’s FTX, as reported by the media.
Analyst Chris Weston at Pepperstone remarked, “With the BTC spot ETF now in the rearview mirror and the tepid interest in these ETFs disappointing some of the more bullish players in the market, we observe the price breaking below the October uptrend and the support levels around 40,200. In the short term, I favour a momentum-driven approach, considering the former consolidation highs at 37,900 as a near-term target.”
In other developments, Ethereum also experienced a 5.3% decline, resting at $2,292.6, down 8.5% from the previous week but showing relative stability for the month. Meanwhile, Solana (SOL) faced an 8% drop, and Avalanche (AVAX) saw an almost 10% decline among major altcoins.
All cryptocurrencies, except stablecoins, registered losses, with only TRON (TRX) and Dai (DAI) within the top 20 largest cryptos experiencing declines of less than 1% over 24 hours.
