As of 10 am on January 19th (Vietnam time), Bitcoin has dropped 3.8% to $41,045 USD, according to Coin Metrics. Prior to that, at one point, this cryptocurrency dropped to $40,601 USD, the lowest level since December 18th, 2023.
Ethereum has also dropped 3% to $2,450 USD. The rest of the cryptocurrency market is also painted red.
The negative trend of Bitcoin has weighed on stocks related to cryptocurrency. Coinbase and Microstrategy have dropped by 7% and 2% respectively. Two cryptocurrency mining companies, CleanSpark and Marathon Digital, have dropped more than 6%, while Riot Platforms has plummeted by 5% and Iris Energy has plummeted by 8%.
“We are still in the process of adjusting to the approval of Bitcoin ETFs,” said Julio Moreno, Head of Research at CryptoQuant, a cryptocurrency data provider.
“Short-term traders and large Bitcoin holders are still selling off amid investor risk aversion,” he added.
The paper profits of short-term Bitcoin traders have decreased to 16% this week, from 48% in December 2023. However, according to Moreno, this profit level may need to decrease to below 0% to determine the bottom of Bitcoin.
Since the US Securities and Exchange Commission (SEC) approved 11 Bitcoin ETFs on January 10th, the price of Bitcoin has dropped 12%. Technical analysts believe that although the long-term upward trend is still intact, Bitcoin may decrease further. Rob Ginsberg of Wolfe predicts that this could be the start of a bad quarter.
Previously, Moreno predicted that the price of Bitcoin could drop to $36,000 USD. Previously, the world’s largest cryptocurrency had increased by 157% in 2023.
