Despite the previous hype surrounding the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) that bitcoin many expected would lead to new highs for the maiden cryptocurrency, its price has dropped below the important psychological level of $40,000, and discussions seem to be dying down.
Indeed, Bitcoin is currently trading in the $39.5k area, falling below the above price range for the first time since December 4, 2023, in what the crypto analytics platform Santiment referred to as a “bloodbath for most of the crypto sector” in an X post on January 22.
Furthermore, the platform has also recorded a decline of 35% in the amount of chatter toward the flagship decentralized finance (DeFi) asset and a 21% drop toward its runner-up, Ethereum (ETH), compared to the period before the ETF approval by the United States Securities and Exchange Commission (SEC).

Shrinking crypto prices and social volume. Source: Santiment

As the platform’s analysts further observed, the ‘fear, uncertainty, and doubt’ (‘FUD’) is “beginning to enter the picture” after the spot Bitcoin exchange-traded fund hype and increased investor interest, “which should create nice price bounce opportunities when it reaches its peak.”
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Meanwhile, Bitcoin was at press time changing hands at the price of $39,460, down 3.12% in the last 24 hours, in addition to dropping 7.61% across the previous seven days and losing 9.64% to its value over the past month, according to the most recent charts on January 23.

Bitcoin 7-day price chart. Source: Finbold

It is also worth mentioning that all Bitcoin ETF issuers except Grayscale have collectively purchased more than 86,320 BTC at an average price of $42,000 – a $3.63 billion investment – which could suggest a formation of the top for the price of the largest crypto asset by market capitalization.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Source: https://thebittimes.com/crypto-crash-bitcoin-drops-below-40k-as-chatter-quiets-down-tbt77391.html

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