Bitcoin price plummets by over 15% following listing of first U.S. spot BTC ETFs

January 21, 2024 | by


The listing of the first U.S. spot BTC ETFs has sent shockwaves through the cryptocurrency market, with Bitcoin experiencing a staggering decline of over 15% in value. This sudden drop has prompted investors to quickly exit the bitcoin space, resulting in intensified selling pressure that further exacerbated the downward trend. Meanwhile, Ethereum enthusiasts are eagerly anticipating a potential surge in 2024, driven by high hopes of a spot ETH ETF listing and the promising Dencun upgrade that seeks to enhance scalability. In a notable development, ARK Invest made a strategic move by selling $15 million worth of shares in the ProShares Bitcoin Strategy ETF and replacing them with its own spot bitcoin ETF. Furthermore, concerning signals have emerged as the monthly net position change for bitcoin held by long-term holders has turned negative, signaling a significant increase in net selling activity. Amidst all these developments, CoinDesk, a reputable media outlet, remains steadfast in delivering comprehensive coverage of the cryptocurrency market and digital assets.

Bitcoin Price Plummet by over 15% following listing of first U.S. spot BTC ETFs

Bitcoin, the world’s leading cryptocurrency, has experienced a significant drop in price since the listing of the first U.S. spot Bitcoin Exchange-Traded Funds (ETFs). The launch of these ETFs has resulted in a negative impact on the Bitcoin market, causing a decline of over 15% in its price. This drop can be attributed to investors exiting the Bitcoin space and selling their holdings, putting downward pressure on prices.

The listing of the U.S. spot BTC ETFs has created a sense of uncertainty and caution among investors. While ETFs are seen as a positive development for the cryptocurrency market, their introduction has also sparked concerns about market manipulation and increased volatility. As a result, some investors have chosen to exit the Bitcoin market in the short term, leading to a decline in prices.

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The impact of the U.S. spot BTC ETFs on the Bitcoin market is expected to be a topic of discussion among market analysts and experts. It remains to be seen how this development will affect the long-term prospects of Bitcoin and whether it will lead to renewed interest and investment in the cryptocurrency.

Impact on Ethereum in 2024

The listing of spot Ethereum (ETH) ETFs in the future could have a significant impact on the price of Ethereum in 2024. With the increasing popularity and acceptance of cryptocurrencies, the introduction of ETH ETFs is highly anticipated by investors. The potential surge in Ethereum price is attributed to the expected listing of spot ETH ETFs.

The listing of spot ETH ETFs would provide investors with an avenue to easily invest in Ethereum, without the complexities of purchasing and storing the cryptocurrency directly. This accessibility and convenience could attract a new wave of investors to the Ethereum market, leading to increased demand and potentially driving up prices.

In addition to the potential listing of spot ETH ETFs, the upcoming Dencun upgrade for improved scalability is another factor contributing to the positive outlook for Ethereum in 2024. This upgrade aims to enhance the functionality and performance of the Ethereum network, addressing concerns around scalability and transaction speed. The successful implementation of the Dencun upgrade could further boost investor confidence in Ethereum and support its upward price trajectory.

ARK Invest’s Swap

ARK Invest, a prominent investment management firm, recently made headlines with a significant swap involving Bitcoin ETFs. The firm sold $15 million worth of shares in the ProShares Bitcoin Strategy ETF and swapped them for its own spot Bitcoin ETF.

This strategic move by ARK Invest showcases its confidence in its own spot Bitcoin ETF and its belief in the long-term potential of Bitcoin. The firm’s decision to sell shares in another Bitcoin ETF and invest in its own offering sends a strong signal to the market about ARK Invest’s commitment to the cryptocurrency space.

The swap made by ARK Invest also underscores the competition and evolving landscape within the Bitcoin ETF market. As more ETFs are introduced, investors have a wider range of options to choose from, and investment firms like ARK Invest must differentiate themselves to attract investors.

Negative Net Position Change for Bitcoin

Recent data reveals a negative net position change for Bitcoin held by long-term holders. This indicates a trend of net selling of Bitcoin, as long-term holders are offloading their holdings. The negative net position change highlights a shift in sentiment among these investors and suggests a decrease in their confidence in the cryptocurrency.

The reasons behind this negative net position change can be multifaceted. It could be a response to the listing of the U.S. spot BTC ETFs, with long-term holders deciding to sell their holdings and take profits. It could also be a result of concerns about regulatory and market risks associated with Bitcoin.

Nevertheless, it is essential to note that negative net position change does not necessarily indicate a bearish trend for Bitcoin. It is important to consider the broader market dynamics and observe whether other factors, such as increased institutional adoption or regulatory developments, may impact Bitcoin’s trajectory in the long term.

About CoinDesk

CoinDesk is a reputable and award-winning media outlet that focuses on cryptocurrency and digital assets. Recognized for its comprehensive coverage and analysis, CoinDesk provides readers with valuable insights into the world of cryptocurrencies, blockchain technology, and the broader digital asset ecosystem.

As the cryptocurrency market continues to evolve and gain mainstream recognition, CoinDesk remains at the forefront of delivering accurate and up-to-date information to investors, enthusiasts, and industry professionals. With a team of experienced journalists and analysts, CoinDesk plays a crucial role in educating and informing its audience about the latest developments, trends, and market movements in the cryptocurrency space.

CoinDesk’s commitment to journalistic excellence and its dedication to providing unbiased and reliable coverage have made it a trusted source of information for individuals seeking to understand and navigate the complex world of cryptocurrencies. Whether you are a seasoned investor or a curious newcomer, CoinDesk offers valuable resources and analysis to help you stay informed and make informed decisions in the ever-changing cryptocurrency landscape.



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