Analysts believe that the decline in the price of the leading cryptocurrency can be attributed to the lackluster interest in the newly launched Bitcoin spot ETFs in the United States. Within two days of their launch, the trading volume of these funds amounted to $3.1 billion. The drop in Bitcoin’s price caused a market-wide decline, with other major altcoins also witnessing a 3.5% fall. Traders’ margin positions saw liquidations totaling $373.6 million in the past 24 hours, with 80% of them being purchases.
Despite the short-term bearish pressure, most analysts maintain a positive outlook for BTC’s medium-term prospects. The increase in institutional investor funds flowing into ETFs, even if initially not substantial, along with the upcoming Bitcoin halving in three months, could contribute to this optimism. These factors are expected to reduce the available supply of Bitcoin in the market, leading to a potential increase in its price.
At the time of writing, the price of Bitcoin has slightly recovered, with BTC trading around $43,000. Earlier, Bits.Media published an extensive analysis on the price movements of Bitcoin and altcoins following the launch of spot ETFs.