© Reuters Bitcoin falls to nearly $42,000 from $49,000 after Spot Bitcoin ETF launch
InfoQuest – Bitcoin continues to decline, closing at $42,000 in today's trading. Just a few days after the launch of the Spot Bitcoin ETF,
As of 9:56 PM local time, Bitcoin was down 0.65% to $42,204.39 in trading on Coinbase (NASDAQ:).
Bitcoin initially rose above the $49,000 level after the US Securities and Exchange Commission (SEC) approved the creation of the Spot Bitcoin ETF on January 10, but has since moved higher. Bitcoin continues to decline. Meanwhile, investors sold on news or sold on the ground about the SEC's approval of the Spot Bitcoin ETF.
This was confirmed by Ms. Kristalina Georgieva, Director General of the International Monetary Fund. Cryptocurrencies are not money. While Bitcoin has surged in response to the launch of the Spot Bitcoin ETF, the cryptocurrency is still far from competing with the dollar.
“Our point of view is that we must differentiate between money and assets. When we talk about crypto we are talking about the classification of assets. If these assets are backed there will be stability and little risk. But if they are not backed it will become a risky investment. But cryptocurrencies are definitely not money.” “It's like a money management fund.”
Why is the dollar the dominant currency today? This is due to the large size of the US economy. The most important thing is “the depth of the US stock market,” Ms. Georgieva said.
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”