First Mover Americas: Bitcoin Slips Below $39K

Bitcoin slipped below $39,000 during the European morning, its lowest level since the start of December, as institutional sales tied to recently launched ETFs continue to weigh down BTC. CoinDesk 20, a liquid index that tracks the highest tokens by capitalization, fell nearly 6%, indicative of average declines in the broader crypto market. Analysts at crypto exchange Bitfinex said in a Tuesday note that the recent slump in bitcoin prices had wiped out gains for short-term investors – with realized losses increasing, adding to a market drop. “Many holders, especially those who acquired BTC less than a month ago, are now exiting the market at a loss,” the analysts said. “Such a substantial decrease in average profits for short-term holders, who tend to react more acutely to short-term market fluctuations, can be a precursor to selling pressure or exit liquidity.”