The cryptocurrency market experienced a sharp decline on Wednesday, erasing gains from the recent approval of a Bitcoin ETF. The pessimistic market sentiment regarding the approval of a Bitcoin spot ETF between January 8-10 led to a general decline in digital currencies. The Bitcoin price, which moved above $45,000 on Tuesday for the first time since 2022, tumbled 5% vs. 24 hours earlier to $42,750. Cryptocurrency exchange Coinbase fell about 3% while Bitcoin miner Marathon Digital pared early losses, gaining 2.2% Wednesday during market action. Fellow crypto-related play ProShares Bitcoin Strategy ETF sank 5%. Grayscale Bitcoin Trust fell 4%.
The decline in crypto stocks is a reminder that the cryptocurrency market is still highly volatile and subject to sudden changes. Investors should be cautious and do their due diligence before investing in cryptocurrencies.
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