$BTC The price of Bitcoin once fell below 42,000 US dollars today, reaching as low as 41,500, with an intraday drop of more than 8%. This is Bitcoin’s largest single-day drop since November 2022. Cryptocurrency concept stocks also fell. BlackRock's spot Bitcoin ETF (IBIT) fell nearly 6%, Coinbase fell more than 6%, Marathon Digital fell 12.5%, and Riot Platforms fell 7%.

Bitcoin ETF performs poorly on first day of listing

Bitcoin ETFs refer to exchange-traded funds that track changes in the price of Bitcoin. On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved the listing of the first 11 Bitcoin ETFs. However, the performance of these 11 ETFs on their first day of listing was not ideal, with BlackRock's Spot Bitcoin ETF (IBIT) falling the most by more than 10%.

Cryptocurrency mining company shares plummet

Cryptocurrency mining companies are businesses that use computers to solve complex algorithms to obtain cryptocurrencies such as Bitcoin. The drop in the price of Bitcoin has reduced revenue for cryptocurrency mining companies, causing their stock prices to plummet. On January 12, the stock prices of cryptocurrency mining companies Marathon Digital, Riot Blockchain, and Bitfarms all fell by more than 10%.

Bitcoin spot trading volume shrinks

Bitcoin spot trading volume refers to the volume of Bitcoin transactions conducted on exchanges. On January 12, Bitcoin spot trading volume shrank, with the average daily trading volume being only about 10 billion US dollars, a significant decrease from previous days.

Bitcoin’s plunge is a symptom of the multiple challenges facing the cryptocurrency market. In the short term, Bitcoin still faces greater downward pressure. In the long term, Bitcoin still has great potential, but investors should take precautions against risks.