The
price
of
bitcoin
(BTC)
fell
below
$40,000
for
the
first
time
since
December
as
selling
continues
to
overwhelm
buying
despite
sizable
inflows
into
the
new
spot
exchange-traded
funds.
A
number
of
spot
bitcoin
ETFs
began
trading
on
Jan.
11,
with
bitcoin
surging
to
$49,000
in
the
minutes
after
their
launch.
The
rise
was
fleeting
though,
and
the
price
has
been
heading
south
since,
finally
falling
through
$40,000
moments
ago.
Bitcoin
is
now
at
its
weakest
price
since
the
beginning
of
December,
but
still
more
than
a
double
from
year-ago
levels.
At
a
glance,
the
new
spot
products
are
seeing
a
gusher
of
fresh
cash,
with
two
–
BlackRock’s
(IBIT)
and
Fidelity’s
(FBTC)
–
topping
more
than
$1
billion
in
assets
under
management
(AUM)
in
the
week
since
opening
for
business.
That
has
to
be
balanced,
however,
against
what’s
now
a
multi-billion
dollar
outflow
from
Grayscale’s
GBTC
product
as
investors
take
profits
or
move
to
other
lower-cost
vehicles.
In
addition
to
outflows
at
GBTC,
money
has
been
exiting
previously
existing
spot
bitcoin
exchange-traded
products
in
Europe
and
Canada
as
well
as
futures-based
ETFs
like
ProShares’
(BITO).
Searching
for
a
bottom
The
bitcoin
trend
has
turned
bearish
for
the
first
time
since
Oct.
2
when
the
price
was
$27,530,
said
10x
Research
in
a
Friday
report.
That
news
alone
might
be
comforting
to
bulls
who
will
remember
Oct.
2
of
last
year
as
nearly
the
exact
launching
point
for
about
a
70%
run
higher
over
the
ensuing
three
months.
10x’s
central
thesis
for
the
first
quarter
of
2024
was
that
any
ETF-related
rally
would
be
fake-out
and
for
prices
to
decline
into
March
towards
$38,000,
to
this
point
a
prediction
that
appears
to
be
playing
out,
though
perhaps
faster
than
anticipated.