← Go back Jan 01, 2024
The price of bitcoin is on the rise as illustrated in these real-time electronic charts, at Bithumb's customer center in Seoul, Jan. 11. This is right after the U.S. Securities and Exchange Commission approved bitcoin exchange-traded funds. Korea Times photo by Shim Hyun-chul By Lee Yeon-woo Despite the approval of the much-waited bitcoin exchange-traded funds (ETFs), its value is continuing on a downward trend. This deviates from market expectations that the price would continue to soar due to an influx of institutional investments. According to the crypto price tracker CoinMarketCap, the price of bitcoin has been hovering around the $43,000 range since last weekend. Its price had been on an upward trend since the beginning of 2024 in anticipation of the decision, yet it faltered by over 10 percent just a day after the U.S. Securities and Exchange Commission's decision. As of 3:30 p.m., on Wednesday, it is trading at $42,804, relinquishing most of the gains it had made earlier this year. Market observers note that the recent drop in bitcoin prices can be attributed to a significant influx of sell orders, driven by investors seeking to realize immediate profits. According to CryptoQuant, approximately 90 percent of the bitcoin supply is currently showing unrealized gains in comparison to their purchase prices. Additionally, there has been a notable shift of funds from the Grayscale Bitcoin Trust (GBTC) to other ETFs. Previously, GBTC operated as a trust product, pooling money from institutional investors to purchase bitcoin on their behalf, and selling it in the form of securities. When it recently transitioned to an ETF and was listed on the New York Stock Exchange, its transaction volume accounted for almost half of the total. However, due to its relatively high fees compared to other ETFs, a significant number of investors appear to be transferring their investments to alternative funds. "Large bitcoin wallets were moving older coins at a high rate, pushing the average age of coins sitting in their wallets down significantly. There are mild signs that this continued movement of older coins is finally done for the time being. This would increase the likelihood of crypto's bull cycle finally halting for now," market intelligence platform Santiment wrote in a report to X (formerly Twitter) on Tuesday. Meanwhile, anticipation of future approval for an e thereum ETF is attracting investor funds. The price of ethereum has risen by approximately 10 percent compared to just before the approval of the bitcoin ETF. However, market observers anticipate a rebound in the prices soon, as the bitcoin halving event is expected this April. Anthony Scaramucci, the founder and CEO of hedge fund Skybridge Capital, told the Reuters Global Markets Forum on Tuesday, "Wherever the price is on the day of the halving in April, multiply it by four, and it'll reach that price in the next 18 months."
Read more: koreatimes
