Crypto News

Bitcoin Exhibits Stability As US Witnesses Historic ETF Debut, But Dips To $42K

Amidst a historic day in the United States and the cryptocurrency realm marked by the launch of the first exchange-traded fund (ETF) dedicated to a single commodity, Bitcoin demonstrated resilience, maintaining a stable position around the $46,000 mark.

Data from Binance indicates a notable pattern where the increase in Bitcoin ETF trading volume coincided with a swift price drop for Bitcoin. The cryptocurrency experienced a shift from its peak, reaching nearly $49,000, to a brief low of approximately $46,800 within an hour. Although, in the last few hours, it has dropped to around $42k levels.

According to insights from the analytics platform Lookonchain, a significant move was made by a whale who deposited the entirety of their holdings—2,742 BTC, equivalent to $127.5 million—into Binance to capitalize on profits following the initiation of Bitcoin spot ETF trading. This whale had previously withdrawn the same amount of BTC from Binance between October 7, 2022, and December 29, 2023, at an average price of $19,337.

Bitcoin Moved Out Of Centralized Exchanges

Notably, these BTC were initially withdrawn from a centralized exchange (CEX) at an average price of approximately $19,338, amounting to $53 million since October 2022. The strategic move orchestrated by the whale resulted in profits exceeding an impressive $74 million.

The daily chart for Bitcoin reveals a 6.4% decline, with the cryptocurrency currently trading at $42k levels. Despite the fluctuations observed during the ETF debut and the subsequent whale activity, Bitcoin maintains stability, showcasing its resilience in response to market events.

The ability of Bitcoin to withstand and navigate significant developments, such as the ETF launch, underscores its position as a foundational asset within the cryptocurrency landscape, valued for its maturity and stability.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

Image Source: luzazure/123RF // Image Effects by Colorcinch

Leave a Comment

Your email address will not be published. Required fields are marked *