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(Bloomberg) — Bitcoin posted its worst streak in nearly a month as the fanfare for a new U.S. exchange-traded fund (ETF) for the largest digital asset died down.
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The token oscillated between gains and losses and was little changed at $42,655 as of 1:42pm on Monday in Singapore. It fell for three straight days through Sunday, the longest such period of decline since mid-December. Smaller cryptocurrencies were mixed, with No. 2 Ether falling and BNB rising.
About a dozen ETFs, including those from investment giants BlackRock and Fidelity Investments, began trading on January 11th. After Bitcoin began trading, it briefly reached a high of over $49,000, but then began to fall.
Tony Sycamore, a market analyst at IG Australia, wrote in a note that the sharp rise and rapid fall was characteristic of the “buy the rumor, sell the fact” reaction that some market observers had predicted. ing. He sees a potential fall between $38,000 and $40,000 based on signals from Bitcoin’s chart patterns.
Bitcoin’s role as a store of value is debatable, but its proponents argue that the first U.S. Token Herald Spot ETF has increased investors’ access to Bitcoin. . Skeptics point to the 2022 crypto crash and subsequent bankruptcies as a reason to be wary of widespread adoption, despite a partial market recovery last year.
Read more: Bitcoin ETF takes Wall Street by storm with historic debut
Eric Balciunas, senior ETF analyst at Bloomberg Intelligence, said in a post on social media site Ta. This includes BlackRock’s iShares Bitcoin Trust with $500 million and Fidelity Wise Origin Bitcoin Fund with $422 million.
Balchunas said the $26 billion Grayscale Bitcoin Trust, the largest fund of its kind, had $579 million in outflows after converting to an ETF last week. The fund has traditionally had a closed-end structure and last year traded at a discount to its underlying holdings, leading some to bet on the gap narrowing.
Noel Acheson, author of the newsletter Crypto Is Macro Now, said part of the reason for Bitcoin’s recent downturn may be that speculators are profiting from its trades now that discounts have all but disappeared. It says no.
“It is highly unlikely that all the outflows from the Grayscale Bitcoin Trust ended up back in Bitcoin,” she said. “New funds will continue to see strong inflows next week as bystander money pours in and the marketing machine gets going. This could mean further outflows in the near term as speculative positions are unwound. There is a possibility that it will be offset by
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