Bitcoin pummels from record $67,016 after flash-crash as US ETF support questioned

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Bitcoin pummels from record $67,016 after flash-crash as US ETF support questioned

Bitcoin, the original cryptocurrency, had beaten a hasty retreat on Thursday from an all-time peak hit a day earlier amid growing optimism over the debut of first US bitcoin futures ETF (Exchange-Traded Fund), as analysts began to question the feasibility of the ETF to yield an influx of fresh liquidities in crypto assets.

In point of fact, after reaching a record 67,016 on Wednesday, Bitcoin had faced off an unprecedented flash-crash on Thursday morning which had witnessed the digital currency plunging as much as 87 per cent to $8,200, however, later it was unveiled that the flash-crash took place on the US exchange of Binance, the largest crypto broker across the globe, though many crypto investors on Binance’s US platform engaged in high-risk leveraged trading, reportedly had lost a large chunk of their lives’ savings, rekindling a caustic cynicism at crypto exchanges while ramping up calls on further attention on crypto brokers' activities.

Bitcoin falls from record peak as ETF strategy under heavy scrutiny

Citing statistics, as of Friday’s early Asia-Pacific trading hours, Bitcoin was last harbouring at $62,837.7 after shrugging off as much as 4.35 per cent on Thursday, while Ethereum and Litecoin were trading 1.22 per cent and 1.32 per cent higher to $4,136.20 and $200.10 respectively.

Although, many crypto traders had long been awaiting the debut of a bitcoin ETF which in effect would more likely to generate a greater investment from both institutional and retail investors, JPMorgan analysts wrote in a client report on Thursday that it remained subject to further questions on how long the ProShares ETF-led rally would last given the extent scrutiny from Central Banks around the globe the digital currency had been grappling with.

Meanwhile, voicing sheer concern on a latest leg of Bitcoin rally, JPMorgan analysts wrote in a client note, “Will the launch of BITO by itself bring significantly more fresh capital into bitcoin? We doubt it given the multitude of investment choices bitcoin investors already have”.