Bitcoin (BTC) tested $44,000 on Tuesday before evening trades sent the benchmark cryptocurrency on a late-date freefall against the US dollar.
By midnight, the BTC/USD pair had lost nearly one percentage point, closing the session right on the 50-day moving average trend line at $42,940.
The 50-day MA, which tallies bitcoin’s closing price over the period to provide a smoothed-out price trend, has emerged as a key resistance point since bitcoin’s underwhelming post-ETF performance.
Bitcoin wobbles on 50-day MA (pink) – Source: binance.com
As of 9am this morning, bitcoin remained just above it at $42,800, with lower trading volumes on a week-on-week basis implying relatively muted interest from the market, for now.
Bitcoin has been hamstrung since 10 January, when the US Securities and Exchange Commission approved 11 spot-bitcoin exchange-traded funds.
Though generally seen as a bullish result, bitcoin’s post-ETF approval price fell amid a ‘sell-the-news’ scenario, as traders exited their positions in favour of taking short-term profits.
Despite the dip in bitcoin’s price, these ETFs have seen more than $1 billion in net inflows so far.
This figure is heavily skewed by Grayscale Bitcoin Trust (GBTC)’s $5 billion-plus in outflows, as investors cash out in favour of cheaper ETF alternatives.
GBTC, which remains nearly 10-times larger in assets under management than its nearest competitor despite these outflows, charges a 1.5% yearly management fee compared to 0.25% offered by BlackRocks’s iShares Bitcoin Trust (IBIT).
Elsewhere in the cryptocurrency space, Ethereum (ETH) closed 1.1% higher on Tuesday before dipping in equal measure this morning.
At the time of writing, the ETH/USD pair was swapping for $2,325.
Both bitcoin and ether have had net positive weeks, while Solana (SOL) has surged more than 15% to bring its token price above $100.
Avalanche (AVAX) was also on the move, adding 12% week on week, while BNB and Cardano (ADA) both added mid single digits.
Global cryptocurrency market capitalisation currently stands at $1.65 trillion, with bitcoin dominance at 52.5%.
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