According to Coin Metrics, Bitcoin fluctuated above $72,000 on March 15th but then lost nearly 7% to drop to $67,000. Currently, the price has recovered to $69,000. However, the specific cause of Bitcoin’s sharp decline is still unclear.
Nevertheless, Bitcoin is still up around 60% since the beginning of 2024 and has become the 8th largest asset in the world. This growth initially came from expectations and later from the demand for physically settled Bitcoin ETFs passed in January 2024.
Kris Marszalek, CEO of Crypto.com, said, “I think this is a healthy correction. The market is shedding some of the leverage in the system.” He also added that the selling pressure may come from the options market.
Some optimistic cryptocurrency investors believe that over time, this asset will become less volatile as Bitcoin matures. The introduction of physically settled Bitcoin ETFs opens up opportunities for more investors to access Bitcoin and theoretically reduce its volatility.
