BTC Slides Under $44K: Bitcoin Miners & ETF News Trigger Sell Calls

• Bitcoin Observes a Decline, Tagging Along Bitcoin Mining Stocks
• Other Crypto-related Stocks Endure Significant Pullback
• Decline Follows Launch of Spot Bitcoin ETF
• Suspected Decline in Bitcoin's Price
• Past Landmarks Foresaw Cooling Prices

Bitcoin Observes a Decline, Tagging Along Bitcoin Mining Stocks

On Friday, Bitcoin$42,260 -0.64% (BTC) saw a sharp fall, landing near $43,000, a 6% decline in day-to-day trading. Further, Bitcoin mining stocks such as Marathon Digital (MARA) and Hut 8 (HUT) experienced over a 10% tumble, extending the decline from the previous day, following the highly anticipated launching of the spot Bitcoin ETF. Notably, this fall made the leading cryptocurrency by market capitalization dip as low as $43,200 during the U.S. trading session. This is a decline from approximately $46,000 earlier in the day and 11% lower than Thursday's two-year peak of $49,000, according to the provided data.

Other Crypto-related Stocks Endure Significant Pullback

The negative impact was also felt on cryptocurrency-related stocks. Both Marathon Digital (MARA) and Hut 8 (HUT), Bitcoin miners, reported declines over 10%. Another Bitcoin miner, Riot Platforms (RIOT), witnessed an 8% fall. Additionally, Coinbase, the crypto exchange integral to multiple spot Bitcoin ETFs, experienced a 6% drop in its stock price.

Decline Follows Launch of Spot Bitcoin ETF

This decline occurred a day following the launch of the spot Bitcoin Exchange-Traded Funds (ETF), a notable landmark for the industry. Bitcoin ETFs serve as traditional financial vehicles that could allow retail investors to more easily gain exposure to Bitcoin's price.

Suspected Decline in Bitcoin's Price

The price sharp falls experienced on Friday may not be unexpected. Last month, CryptoQuant, a research firm, forecasted that Bitcoin could dip as low as $32,000 in the following month after an ETF approval. This was termed as a sell the news event.

Past Landmarks Foresaw Cooling Prices

Interestingly, major events such as Coinbase's stock market listing in April 2021, and the debut of ProShares' futures-based Bitcoin ETF (BITO) in October 2021, occurred near a significant peak in crypto prices. This could possibly hint at the cooling prices in the future.

Edited by Jonathan Stoker