Spot ETF hype leads to Bitcoin’s decline of over 12%, falling below $42k

Bitcoin, the world’s largest cryptocurrency, has experienced a decrease in price after reaching a high of $49,000. This drop in price could be the beginning of a larger pullback. The approval of spot Bitcoin ETFs on January 10 was seen as a significant advancement for the industry, but even before the announcement, speculation surrounding the approval had influenced market pricing. Additionally, technical charts had indicated the possibility of a pullback, possibly due to Grayscale Bitcoin Trust sellers trying to exit their positions. Currently, 632,000 BTC is held in U.S. spot ETFs, accounting for approximately 3% of the total supply of Bitcoin. The price of Bitcoin has further dropped to $41,349, a 3.1% decrease in the last day.