The recent approval of spot Bitcoin ETFs (exchange-traded funds) marked a pivotal moment in the cryptocurrency market. These ETFs commenced trading with record volumes. Concurrently, Coinbase experienced its highest volumes in over-the-counter (OTC) desk transfers.

Despite these milestones, Bitcoin ETFs are trading at a premium compared to spot Bitcoin, indicating a unique market trend.

Bitcoin Price Correction Has Just Begun

The approval of spot Bitcoin ETFs did not receive the expected optimism. Analysts at CryptoQuant shared with BeInCrypto in an exclusive report that such a milestone acted as a “sell-the-news” event. The result was a Bitcoin price drop – a 15% decline since January 11, from $48,700 to a low of $41,500.

According to CryptoQuant, the current Bitcoin price correction might continue. Indeed, short-term traders and prominent Bitcoin holders continue to sell, reflecting a broader “risk-off” attitude within the market. This selling pressure is compounded by the fact that unrealized profit margins have not fallen sufficiently to indicate that sellers are exhausted.

“Several on-chain metrics and indicators still suggest the price correction may not be over or at least that a new rally is still not on the cards… On-chain data shows high selling activity from short-term traders/investors. This type of selling activity has remained high after the price sell-off,” analyst at CryptoQuant said.

Bitcoin Spent Output Age Bands

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Author: Bary Rahma

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