The price of Bitcoin (BTC) has fallen to $40,000 U.S. as the correction that began after cryptocurrency exchange-traded funds (ETFs) were approved in America on Jan. 10 worsens.
The price of Bitcoin has now declined 18% from a peak price of $49,000 U.S. that it reached on Jan. 10 just as the U.S. Securities and Exchange Commission (SEC) approved a dozen spot Bitcoin ETFs for the American market.
In overnight trading, Bitcoin’s price fell as far as $40,601.37, its lowest level since Dec. 18 of last year. The price has since recovered and is currently at $41,380 U.S.
The drop in Bitcoin comes despite the new crop of ETFs proving popular with retail investors. In their first week of trading, the spot Bitcoin ETFs attracted a combined $1.90 billion U.S. of capital.
At the same time, the price of Ethereum has been rising on expectations that ETFs tied to its spot price will be approved this summer by the SEC. Ethereum’s price is now at $2,485 U.S.
Some analysts are blaming the current slump in Bitcoin’s price on profit taking by investors.
Bitcoin has support levels at $42,000 U.S. and $36,000 U.S. In the last 12 months, Bitcoin’s price has gained 97%.
