On Wednesday, the market saw a decline in Bitcoin and crypto stocks as investors eagerly await the approval of spot Bitcoin ETFs by federal regulators, which is expected to happen by January 10th.
The Bitcoin price, which reached a high of $45,000 on Tuesday for the first time since 2022, fell by 5% in comparison to 24 hours earlier, reaching $42,930.
During market action, Coinbase (COIN) fell by 2%, while Marathon Digital (MARA), a Bitcoin miner, recovered from losses and gained 2.7%. On Tuesday, COIN stock fell by 6.7%, while MARA stock fell by 16.4% on December 29th before recovering slightly with a 2.4% loss.
Other crypto-related companies also saw declines on Wednesday, with the ProShares Bitcoin Strategy ETF (BITO) falling by 4.4% and the Grayscale Bitcoin Trust (GBTC) falling by 4.7%.
The ProShares Bitcoin Strategy ETF, launched in October 2021, is the first U.S. bitcoin-linked ETF and currently has the largest assets under management as of September 30th according to Bloomberg data. However, it only invests in bitcoin futures contracts and does not offer direct exposure to the cryptocurrency.
The drop in Bitcoin and crypto stocks on Wednesday is in anticipation of the Securities and Exchange Commission’s approval of several spot Bitcoin ETF applications in the coming week. This is expected to allow institutional investors to participate more easily in the crypto market and offer exposure to their clients.
At the end of 2023, Bitcoin was trading at 20-month highs of around $43,000, a significant increase from $27,000 at the end of September. The world’s largest cryptocurrency saw a 158% rebound in 2023.
Other crypto-related stocks such as Riot Platforms (RIOT), Robinhood Markets (HOOD), and MicroStrategy (MSTR) also saw declines of 2%, 3.6%, and 6.8% respectively.
For more coverage, follow Kit Norton on Twitter (@KitNorton).
YOU MAY ALSO LIKE:
– Get an edge in the stock market with IBD Digital
– Is Tesla stock a buy or sell?
– Stocks near a buy zone
– Learning how to pick great stocks? Read Investor’s Corner
– Is Rivian a buy right now after the Cybertruck delivery event?
