Bitcoin falls to $42,000 level ─ ETF approval leads to “selling on news” | CoinDesk JAPAN

Bitcoin (BTC) fell below $42,000 on the 12th, plummeting nearly 10%, as euphoria over the Bitcoin ETF approved this week turned downward. (nearly $2,830).

Bitcoin had soared to a two-year high of $49,000 on the 11th, when Bitcoin ETF trading began in the United States.

Shares of Coinbase, a cryptocurrency exchange that provides critical custody services for most ETF issuers, also fell 7.4% on the 12th. Bitcoin miners Marathon Digital, Hut 8, and Riot Platforms all fell more than 10%.

Bitcoin ETF trading had just started the day before. It was an important milestone for the industry. ETFs are traditional financial instruments, and Bitcoin ETFs are expected to lower the hurdles for Bitcoin investment for both individual and institutional investors.

Research firm CryptoQuant last month predicted that Bitcoin would fall to $32,000 in the month following the ETF’s approval, leading to a “sell the news” event.

Related article: Bitcoin ETF approval could be “selling on the news”: CryptoQuant

Notably, past landmark events such as Coinbase’s listing in April 2021 and the debut of ProShares’ Bitcoin Futures ETF (BITO) in October 2021 have led to significant changes in crypto asset prices. This is happening near the peak and may be a sign that prices will cool down in the future.

｜Translation/Editing: CoinDesk JAPAN Editorial Department
｜Image: CoinDesk
｜Original text: BTC Tumbles Below $42K, Coinbase and Miners Plunge as Bitcoin ETF Mania Becomes ‘Sell the News’ Rout