Over $100 billion in Bitcoin's market capitalization 'evaporates' after the ETF wave.

From near $49,000 per coin when the ETF was approved in the US, Bitcoin has plummeted by almost 18%, wiping out over $100 billion in market capitalization.

From late on January 19th, Bitcoin continuously dropped in price, closing the day with a nearly 3% decrease. Around 0:10 AM, the world's largest cryptocurrency fell to approximately $40,280 per unit, its lowest level in over a month. Afterward, Bitcoin gradually recovered and began trading sideways around $41,500 throughout the morning.

Overall, this cryptocurrency has closed lower for four consecutive days. Since January 11th – the date Bitcoin ETFs were approved in the US – the market price of this asset has fallen nearly 18% from its peak of $48,969. As a result, the total market capitalization has plummeted from nearly $913.7 billion to just over $790 billion, a loss of over $120 billion.

CoinDesk's Bitcoin Trend Indicator has also retreated from a significantly bullish level to a neutral one. The "buy the rumor, sell the news" strategy is considered the main reason why investors are continuously taking profits after having invested in the market at lower prices.

Vetle Lunde, an analyst at cryptocurrency research firm K33, noted that long before ETFs were approved, numerous spot Bitcoin products were already being traded worldwide. In fact, ETFs are just one type of exchange-traded product (ETP). Other ETPs globally currently hold over 864,000 Bitcoin. Meanwhile, ETF issuers only recorded just over 68,000 units in their first week of operation. This means the emergence of ETFs has created only a "relatively small boom."

Analysts at market research firm CryptoQuant say that several metrics and indicators still suggest the price correction may not be over, or at least a new bull run is yet to come. "Short-term traders and large Bitcoin holders are still selling significantly amid high risk aversion," the firm's recent report stated.

CryptoQuant predicted last month that Bitcoin could fall to as low as $32,000 next month following ETF approval.

Furthermore, investors' anticipation of a similar ETF for Ether is also a reason for Bitcoin's price drop. Recently, many have switched to Ether and withdrawn capital from Bitcoin because they believe good news will also come for the second largest cryptocurrency. However, investment bank JPMorgan predicts that the likelihood of Ether ETFs being approved is no more than 50%.

Xiao Gu (according to CoinDesk )

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