Since its launch in 2009, the price of Bitcoin has been volatile. It reached levels close to $65,000 in April 2021 and fell below $4,000 in March 2020. In January 2024, Bitcoin experienced a downturn after peaking at $49,000 in 20 months. It then fell below $40,000. It ended up reaching around $35,000 within a few days. This marks a significant price correction for Bitcoin, which is trading below $40,000, after surging above $48,000 for the first time on the first day of trading following the SEC’s approval of 11 new Bitcoin ETFs. Currently, Bitcoin has taken a negative turn, falling 20% from its peak in January, falling 6% in the past two days, and finally closing at $39,000.
Bitcoin Price Current Market Performance
As of now, the Bitcoin price is $39,676.64, with a 24-hour trading volume of approximately $30 billion. Bitcoin is down 0.93% in the past 24 hours, maintaining its lead on CoinMarketCap with a market capitalization of over $777 billion. The circulating supply of Bitcoin is approximately 19 million, and the maximum supply is capped at 21 million. As of this writing, BTC is trading at 39,919.18.
Add a comment on the image, no more than 140 words (optional)
Main reasons for Bitcoin price drop
1. Spot BTC ETF launch disappointing
The latest crash follows the launch of a spot BTC ETF in the United States, a highly anticipated development in the cryptocurrency community. However, the results fell short of expectations, with the 10 new ETFs attracting only $4.7 billion in total. Grayscale deposited a large amount of BTC worth over $600 million on Coinbase, and the now-bankrupt FTX sold nearly $1 billion worth of GBTC shares, adding to the decline. As the spot ETF hype fades, profit-taking among cryptocurrency investors intensifies, leading to a sharp decline in Bitcoin prices over the past two weeks. Peter Schiff, a well-known Bitcoin skeptic who once predicted Bitcoin’s demise, attributed Bitcoin’s decline to the spot BTC ETF’s failure to live up to expectations.
2. Liquidation wave
Recent changes in Bitcoin prices are often referred to as "massive liquidations," which occur when large numbers of traders are forced to close their positions due to factors such as margin calls or stop-loss orders. This phenomenon puts downward pressure on Bitcoin prices, with more supply entering the market and less demand. According to data from Coinglass , more than $52.8 million in long positions were liquidated in the past 24 hours, with long liquidations across cryptocurrencies totaling more than $23 million. According to data from Arkham Intelligence , long liquidations exceeded $100 million in just one hour. Meanwhile, the price of Bitcoin fell below $39,000.
Source: Coinglass attributes this decline to the liquidation of GBTC by bankruptcy estates such as FTX, which held large amounts of GBTC stock and sold nearly $1 billion worth of Bitcoin . Additionally, some experts have highlighted profit-taking activity by major investors as well as the general bearish sentiment among ordinary investors
What is the future of Bitcoin?
Unless buying demand returns quickly, Bitcoin is likely to continue falling in the second half of the week and could fall below $34,000 this month. Disappointment surrounding spot ETFs has made it easier for long-term holders to exit, leading to recent price declines. Looking ahead, experts believe that Bitcoin’s price trajectory will depend on the ability of bulls to build momentum near the current price level of nearly $40,000. Some predict that if this momentum does not materialize, the price could return to $38,000. Despite the recent turbulence, there is optimism that the ETF sell-off will ease, paving the way for a more stable uptrend. Based on historical patterns observed in previous halving events , the upcoming Bitcoin halving event in April 2024 is expected to have a positive impact on the price of the cryptocurrency. This could bring new impetus to Bitcoin’s market dynamics and could impact its price in the coming months.
