Bitcoin (BTC) Price Drops 11% in June as IBIT ETF Mirrors the Decline

Shares of the iShares Bitcoin Trust (IBIT -0.76%) exchange-traded fund (ETF) fell by 11.4% in June, according to data from S&P Global Market Intelligence.

The iShares Bitcoin Trust (IBIT -0.76%) ETF saw its shares decline by 11.4% in June, as noted by data from S&P Global Market Intelligence. This decrease mirrored the performance of the underlying Bitcoin (BTC -1.95%) chart, which saw a decline of 11% over the course of the month.

As the largest and most popular spot-price Bitcoin ETF, the iShares Bitcoin Trust is expected to follow the price movements of Bitcoin almost precisely. When comparing an ETF's price to the price of Bitcoin over a period of several days, there are typically small spreads. This is because an ETF's price only moves during the stock market's standard trading hours, while crypto prices never stop moving. However, when the market is open, the two assets will be almost completely in sync, and any divergences will even out in the long run.

Several driving factors contributed to Bitcoin's poor performance in June.

Rising energy costs and inflation had a negative impact on the stock market, which in turn put pressure on Bitcoin and other crypto prices.

Additionally, crypto miners faced challenges in obtaining the necessary equipment and faced delays in expanding their operations, which may have also affected the supply and demand for Bitcoin.

As we approach the next halving event, which is expected to occur in 2024, and considering the institutional interest and limited supply of Bitcoin, it's possible that we may see another surge in interest and price increases.

However, it's important to note that the crypto market is highly volatile and can be influenced by a wide range of factors, making it difficult to predict precise movements.

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