Bitcoin falls as crypto traders take profit
Proactive Investors
Published Feb 23, 2024 02:35
Updated Feb 23, 2024 03:00
Bitcoin falls as crypto traders take profit
Bitcoin (BTC) fell one percent against the US dollar today after posting 0.7% in losses on Wednesday.
The world’s largest cryptocurrency has shown signs of cooling off in the second half of February after penning an impressive 26% gain in the opening two weeks.
Traders are taking profits in response to this rally, though bitcoin remains in a fundamentally strong position, 21% higher year to date and more than double in value year on year.
Bitcoin’s strong position is partially thanks to strong inflows across the spot-bitcoin exchange-traded fund market which launched last month.
Latest data provided by CoinShares shows net inflows of more than $2.4 billion last week, indicating a sustained appetite for bitcoin-linked ETFs.
This is despite more than $600 million in outflows from the largest ETF of the bunch, Grayscale Bitcoin Trust (GBTC).
GBTC’s excessive management fee of 1.5% has caused traders to reallocate elsewhere.
At the time of writing, the BTC/USD pair was swapping for $51,350.
Bitcoin is in the red this Thursday – Source: tradingview.com
Elsewhere in the crypto markets, Ethereum (ETH) dipped 1.5% on Wednesday but has levelled off today.
The ETH/USD pair was a whisker away from $3,000 at the time of writing, which may be acting as a resistance point on the spot markets.
Solana (SOL) and Avalanche (AVAX) are leading the losers in the wider altcoin space, having dipped 9% and 12% respectively, week on week, while BNB and tron (TRX) are up in the mid single digits.
Global cryptocurrency market capitalisation currently stands at $1.96 trillion, with bitcoin dominance at 52.9%.
Read more on Proactive Investors AU
Disclaimer
Get The App
Written By: Proactive Investors
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.