Bitcoin's ETF Effect: A Thrilling Ride with New Lows and Highs

Bitcoin recently faced a downturn, marking its worst performance in about a month, due to waning enthusiasm surrounding new US exchange-traded funds (ETFs) for the digital asset. The cryptocurrency initially fell by as much as 1.9% before recovering to trade at $42,239, continuing its four-day losing streak, the longest since mid-December. While nearly a dozen ETFs, including those from BlackRock Inc. and Fidelity Investments, began trading on January 11, Bitcoin's initial surge above $49,000 was followed by a decline. Some analysts attribute this pattern to a "buy-the-rumour, sell-the-fact reaction." Speculation suggests a possible decline to the $38,000 to $40,000 range based on chart patterns. While supporters view ETFs as expanding investor access to Bitcoin, skeptics remain cautious due to past market volatility, despite a partial recovery in 2022.