Bitcoin falls to US$40,000, the lowest level since Bitcoin ETF launch
Sign up now: Get ST's newsletters delivered to your inbox
Market watchers said Bitcoin was having a tough time competing with traditional stocks after the S&P500 benchmark notched fresh record highs on Jan 22.
ST PHOTO: GAVIN FOO
NEW YORK – Bitcoin fell to a seven-week low on Jan 22, trading below US$40,000 for the first time since the launch of 11 spot Bitcoin exchange-traded funds (ETFs) on Jan 11.
The world’s largest cryptocurrency quickly recovered, and was last down 3.39 per cent at US$40,181, trading at its lowest since Dec 4. Ether, the second-largest cryptocurrency, was down 5.75 per cent at US$2,343.55.
Bitcoin’s fall follows a run-up in the token on growing excitement that the United States Securities and Exchange Commission (SEC) would approve Bitcoin ETFs,
Some analysts said they had expected Bitcoin to initially pare some of those gains.
Other market watchers said the cryptocurrency was having a tough time competing with traditional stocks after the S&P500 benchmark notched fresh record highs on Jan 22.
“It feels like Bitcoin investors are running up a descending escalator right now as traditional financial benchmarks enjoy the easier ride to record highs,” said Mr Antoni Trenchev, co-founder of crypto lender Nexo.
He noted that previous major crypto events, including the initial public offering of crypto exchange Coinbase and the launch of Bitcoin futures, were followed by similar Bitcoin slumps.
“Spot Bitcoin ETFs are in danger of joining the... crypto hall of infamy,” he said. REUTERS
