Bitcoin Price Tumbles 6% as Post-Bitcoin ETF “Sell-the-Fact” Reaction Comes In – How Low Can the BTC Bears Push the Price?
The Bitcoin (BTC) price has tumbled more than 6% from the mid-$46,000s to the mid-$43,000s, as the post-spot Bitcoin ETF “sell-the-fact” reaction comes in.
The US SEC approved the launch of the first 11 spot Bitcoin ETFs on Wednesday.
Trade in the new Bitcoin investment products went live on Thursday and was a big success.
As per LSEG data cited by Reuters, the new spot Bitcoin ETFs saw $4.6 billion in trading volumes on Thursday.
Higher-than-expected demand helped propel the Bitcoin price to fresh two-year highs above $49,000 at the time.
But the Bitcoin price has since succumbed to a wave of profit-taking.
When the Bitcoin price high $49,000 on Thursday, that took its spot Bitcoin ETF optimism-fuelled rally in the past five months to a staggering 90%.
Some analysts had warned that this rally left the market vulnerable to a profit-taking-fuelled pullback, or a so-called “sell-the-fact” reaction.
Friday’s bearish price action suggests that this sell-the-fact reaction is starting to come in.
Reports that Bitcoin miner outflows to exchanges has hit a six-year high might also have upset the market.
Miners need to periodically send their BTC to exchanges to sell in order to fund their mining costs.
CryptoQuant analyst Bradley Park told the crypto press that mining pool F2Pool was behind much of the recent outflows.
He noted that F2Pool may be selling coins to fund miner upgrades ahead of the halving.
The Bitcoin price’s latest dive has seen it break below a one-week uptrend.
BTC is currently probing for a break below its 21DMA, which sits at $44,000.
A convincing break below here would open the door to a test of the 50DMA at $42,400, and an uptrend from December.
But risks are titled towards an even bigger dip in the Bitcoin price.
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