Bitcoin falls below $40,000 – now down nearly 20% after the rise in ETFs | CoinDesk JAPAN

Bitcoin (BTC) price has fallen to $40,000 (approximately 5 million yen) for the first time since December, as selling continues despite large inflows into newly launched spot ETFs (exchange traded funds). (exchanged at 145 yen to the dollar).

Bitcoin ETF falls after launch

More than a dozen Bitcoin spot ETFs began trading on January 11, and Bitcoin soared to $49,000 within minutes of its launch. However, this rise was short-lived and the stock began to decline. Bitcoin is currently at its lowest price since early December, but is still more than double its level from a year ago.

At first glance, physical ETFs are generating large inflows. iShares Bitcoin Trust (IBIT) from BlackRock, the world’s largest asset management company, and Fidelity’s Wise Origin Bitcoin Fund (FBTC). One week after its launch, assets under management exceeded $1 billion.

However, Grayscale’s Grayscale Bitcoin Trust (GBTC) is currently seeing a number of investors taking profits or moving to other low-cost physical ETFs. We need to consider that billion dollar outflows are occurring. In addition to outflows from GBTC, futures-based ETFs such as the ProShares Bitcoin Strategy ETF (BITO) and existing Bitcoin spot ETPs (exchange traded financial products) in Europe and Canada Funds are also flowing out.

Bitcoin searches for bottom price

10x Research said in a report on Wednesday that Bitcoin’s trend has turned bearish for the first time since October 2, when the price was $27,530. This news alone may be a relief to bulls who may remember that October 2 last year was the exact starting point for a roughly 70% rally over the next three months.

10x’s central thesis for Q1 2024 was that all ETF-related gains were fake and prices would fall to $38,000 heading into March. For now, this prediction appears to be coming true, although perhaps faster than expected.

｜Translation and editing: Rinan Hayashi
｜Image: Eva Blue/Unsplash
｜Original text: Bitcoin Slides Below $40K, Now Down Nearly 20% From Post-ETF Euphoria