Bitcoin and other cryptocurrencies were falling on Monday. The initial wave of buying after the approval of exchange-traded funds tied to spot trading of Bitcoin looks to have been exhausted.
Bitcoin
was down 0.7% to $42,662 over the past 24 hours. That puts the largest cryptocurrency back into its trading range of $42,000 to $44,000 established before the Securities and Exchange Commission approved the first Bitcoin ETFs last week, which briefly sent it above $49,000.
The price move suggests some analysts’ predictions that the approval would be a ‘sell the news’ moment for Bitcoin was accurate. The question now is how much profit-taking could dent the cryptocurrency’s rally, which has more than doubled its price over the past 12 months.
“Bitcoin will likely start to consolidate this week, and the $40,000 psychological level could be a reliable support for the price,” wrote Yuya Hasegawa, an analyst at crypto exchange Bitbank, in a research note.
Another test for the crypto sector looms this week as the cryptocurrency exchange
Coinbase Global
will on Wednesday ask a federal court judge to dismiss the lawsuit brought against the company last year by the SEC, which sued the company for allegedly offering and listing unregistered securities, among other things. Coinbase is acting as custodian for eight of the Bitcoin ETFs that started trading last week.
Beyond Bitcoin,
Ether
—the second-largest cryptocurrency—was down 0.9% at $2,525. Among smaller cryptocurrencies
Solana
was down 2.1% and
Cardano
fell 1.8%.
Dogecoin
dropped 3.0%.
Write to Adam Clark at [email protected]
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