Cover image via U.Today
The price of Bitcoin (BTC) fell below $40,000 for bitcoin the first time since December as the entire crypto market witnessed a bloodbath.
On Jan. 11, spot Bitcoin ETFs began trading in the United States, and Bitcoin quickly surpassed $49,000. However, the boost was just temporary, as the price fell quickly afterward. The falls continued, with Bitcoin falling below the psychological level of $40,000 in the process.
Bitcoin (BTC) plummeted below $39,000 during European trading hours on Tuesday, wiping away nearly all of the previous two months’ gains in anticipation of spot exchange-traded fund (ETF) approvals in the United States.
Bitcoin plummeted more than 5% in the last 24 hours, reaching a low of $38,600 before recovering marginally. At the time of writing, BTC was down 4.69% in the last 24 hours to $38,927.
gm>$100M in long positions have been liquidated in the past hour.Stay safe out there. pic.twitter.com/aD3mKGtS1g— Arkham (@ArkhamIntel) January 23, 2024
Arkham Intelligence reports long liquidations topping $100 million in the space of an hour as bears invade the crypto market.
Peter Schiff reacts to Bitcoin price drop
Well-known Bitcoin critic Peter Schiff reacted to Bitcoin’s price drop in a tweet, saying, “I’m surprised it’s still this high, as the decline has been surprisingly orderly.”
In another tweet, Schiff, an economist and gold bug, justified his earlier prediction of the Bitcoin ETF approval as a “buy the rumor, sell the news event.”
In a tweet from Jan. 2, Schiff warned that the launch of Bitcoin ETFs might have a devastating influence on the price of BTC: “Be careful what you wish for. The promise of a U.S.-listed spot Bitcoin ETF has been supporting the Bitcoin price and speculative demand for years. Once the ETFs are launched and the highly anticipated institutional and other new investor demand does not show up, look out below.”
Given that Schiff has long been a Bitcoin skeptic and has forecast its death for years, his statements are frequently taken with a grain of salt.
According to analysts, the introduction of spot Bitcoin ETFs in the United States was widely anticipated and well priced, and the event was likely to mark a short-to-midterm high for the BTC price.