Throughout week 3, it became clear that many of those who buy Bitcoin also understand the importance of taking profits from time to time. With the launches of several spot Bitcoin ETFs in succession in week 2 and consequently a positive price movement, week 3 did not turn out to be a highlight for Bitcoin. At its lowest point for the week, nearly $40 billion in market value was shaved off. Let's take a quick look at what happened in week 3.
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Bitcoin started the week trading around $42,279, and the high/low for the week were $43,407 and $40,377, respectively. Bitcoin ended the week at $41,771, representing a decrease of 1.20% from the beginning of the week. The trading volume ranged from $5.5 billion to $28 billion.
Without pinpointing the exact reason for the decline in week 3, one would naturally assume that most of the selling, even though Bitcoin essentially ended the week where it started, was simply due to profit-taking. This applied to both retail and professional players in the market. Since Bitcoin approached $50,000 intraday in week 2, many who recently bought Bitcoin are now in the profit zone. Nevertheless, Bitcoin recovered much of the losses towards the end of the week.
Some of the positive news from last week came from South Korea. The Chief of Policy at The Office of the President, which advises the president, made what can be interpreted as a positive statement regarding spot Bitcoin ETFs. Previously, South Korea's top financial regulatory body had warned against trading spot Bitcoin ETFs. However, the Chief of Policy stated last week that "..the regulatory body (FSC) should not take a specific stance for or against the ETFs. The regulatory body should instead examine how the new ETFs can be integrated."
This text is meant to inform and is not an investment recommendation.