Bitcoin
(BTC)
dropped
below
$42,000
on
Friday,
plunging
almost
10%,
as
the
euphoria
over
the
bitcoin
ETFs
approved
this
week
gave
way
to
a
massive
rout.
Bitcoin
had
been
as
high
as
$46,000
earlier
Friday
and
surged
to
a
two-year
high
of
$49,000
on
Thursday,
when
bitcoin
ETFs
began
trading
in
the
U.S.
But
the
heady
prices
didn’t
last
long.
Shares
of
Coinbase
(COIN),
the
crypto
exchange
that
provides
vital
custody
services
to
most
of
the
ETF
issuers,
lost
7.4%
on
Friday.
Bitcoin
miners
Marathon
Digital
(MARA),
Hut
8
(HUT)
and
Riot
Platforms
(RIOT)
all
sank
at
least
10%;
Marathon
fared
worst,
slumping
15%.
The
declines
happened
a
day
after
spot
bitcoin
exchange-traded
funds
(ETFs)
began
trading,
marking
a
significant
milestone
for
the
industry.
Bitcoin
ETFs
are
traditional
financial
vehicles
that
may
give
retail
and
institutional
investors
alike
easier
exposure
to
bitcoin’s
price.
Friday’s
price
declines
may
not
be
a
surprise;
research
firm
CryptoQuant
predicted
last
month
that
bitcoin
would
fall
to
as
low
as
$32,000
in
the
next
month
after
an
ETF
approval,
being
a
“sell
the
news”
event.
Notably,
previous
landmark
events
such
as
Coinbase’s
stock
market
listing
in
April
2021
and
ProShares’
futures-based
bitcoin
ETF
(BITO)
debut
in
October
2021
happened
near
a
significant
peak
in
crypto
prices,
possibly
foreshadowing
cooling
prices
ahead.
