Bitcoin falls below $60,000 for the first time in over a week
Following a bullish run fueled by the launch of several Bitcoin futures ETFs, Bitcoin has dipped below $60,000 to a current price of $58,823.
Bitcoin breached the $60,000 benchmark ten days ago. The digital asset embarked on a historic run that led to a new all-time high of $67,276 after news that the SEC may soon start approving Bitcoin ETFs in the United States emerged.
However, it seems the honeymoon season caused by the SEC’s pivotal ETF decision has come to an end, judging by the current price action. Bitcoin has dipped by 6.6% in the past 24 hours.
Earlier this month, the SEC approved the first American Bitcoin futures ETF. The regulatory body accepted the registration request for ProShares’ Bitcoin ETF on Oct 15. It also accepted the registration request for the shares of Valkyrie’s Bitcoin Strategy ETF.
Back then, Bitcoin surged to $59,400 in under an hour, a 4% growth at the time. It eventually reached its new all-time high price above $67,000 shortly afterward.
The arrival of Bitcoin ETFs in the United States has been long anticipated even though the ETFs do not provide users with shares backed by Bitcoin. Instead, they give users shares that are tied to Bitcoin futures – contracts to buy Bitcoin at a future date.
These futures ETFs tend to favor institutional investors and professional traders who are conversant with complex financial instruments more than regular retail investors. Hence, it is not quite certain if the Bitcoin futures ETFs will drive any meaningful mainstream adoption.