Elsewhere, the dogecoin spinoff shiba inu rallied 19% on Monday, gaining 265% from a week ago, while other altcoins saw general downturns.

The ETF tracks firms that hold a majority of their net assets in bitcoin or get a majority of their profit or sales from bitcoin-related activities.

21% of fund managers surveyed by BofA said "long bitcoin" is the most crowded trade, compared to 43% who said so last month.

On May 8, the number of active bitcoin addresses hit 1.229 million, just shy of the all-time record of 1.243 million, Glassnode data shows.

"If I were not at Square or Twitter I'd be working on bitcoin," Jack Dorsey said at the Bitcoin 2021 Miami conference on Friday.

From May 17 to May 24, bitcoin holders realized net losses of $2.56 billion according to data from the blockchain analytics firm Glassnode.

The number of bitcoin whales fell to 1,943 on Monday, a 13% drop from the record high of 2,237 on February 7.

"It's going to be very hard to unseat bitcoin as a store of value asset," Druckenmiller told CNBC. "It's been around long enough, and obviously, there's a finite supply."

"The flow into bitcoin funds appears weak, raising concerns about the strength of the overall bitcoin flow picture at the moment," JPMorgan said.

"The 50-day MA is being tested, and we believe consecutive closes below it would increase risk of a test of support near $42,000," Stockton said.

There is still downside potential for bitcoin, especially if the cryptocurrency fails to establish consecutive daily closes above its previous March high.

Bitcoin briefly topped $61,200 on Monday as the crypto world awaited Coinbase's IPO, expected to price on Wednesday.

Since hitting its record high in mid-March, bitcoin has traded mostly sideways and failed to push through the $60,000 level three separate times.

In a note to clients on Friday UBS Global Wealth Management said it believes bitcoin's rise still shows signs that it is a "speculative bubble."

The launch of the new mining pool comes amid increasing backlash from critics over the tremendous amount of energy used to mine the cryptocurrency.

Bitcoin is down roughly 16% from March 13 record highs of over $61,000 per coin, as highly correlated crypto mining stocks follow suit.

The firm also raised questions surrounding bitcoin's rising valuation and whether it's enough for the cryptocurrency to evolve into an asset class.