Did Bitcoin (BTC) Price Indeed Bottom After the Unrealistic ETF-Related Market Expectations? (Analysis)

2 Mins read

The US Securities and Exchange Commission made history in mid-January when it finally approved nearly a dozen spot BTC ETFs to launch on local exchanges after a decade of delays and rejections.

There was a big price run-up ahead of the approvals that resulted in a highly positive Q4 ’23 for BTC. However, the landscape changed on the day the ETFs launched in the US, and Bitcoin slumped by over ten grand in the following weeks. Has the asset finally bottomed?

The ETF Aftermath

All eyes in the financial world were on the US SEC at the start of the year, with multiple experts claiming that the regulator will finally allow spot Bitcoin ETFs in the country. As such, the anticipation led to a massive increase in BTC’s price, which soared past $40,000 for the first time in nearly two years.

The experts turned out to be correct, and the US watchdog greenlighted 11 such products on January 10, and they went live for trading on the next day amid record-setting volumes.

Bitcoin’s price reacted well at first and shot up to over $49,000 hours after the US exchanges opened on that Thursday, but the landscape changed later on. After an immediate retracement of over seven grand, BTC kept dumping and bottomed at $38,500 last Thursday. As such, the asset had lost more than ten grand in two weeks.

Since then, BTC’s price performance has been a lot less volatile but still positive, and the cryptocurrency currently stands at around $43,000. Thus, it has erased almost all losses induced after the ETF approvals.

The Botton Was Reached?

After this substantial decline, the community started speculating on whether the asset had indeed reached its post-ETF bottom as those approvals became a sell-the-news moment. Data from Santiment shows that this might be the case, especially when we compare social discussions.

They shot up in the second half of 2023 when the anticipation for the ETFs was on a high note, which led to a gradual increase in the greed factor. However, three weeks after the launch of the ETFs, Santiment said this indicator “has finally normalized,” suggesting that BTC’s price has gone through the post-approval volatility and could be preparing for the next big event of 2024 – the halving.


Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

Source link

Related posts

Token Unlock Fest Or Price Fizzle?

2 Mins read
Polygon, the Ethereum scaling platform, finds itself at a crossroads. On one hand, it recently completed its final token unlock, marking a…

Bitcoin May Fall To $42,000 Ahead Of Major Rally

2 Mins read
In an exclusive interview with CNBC’s ‘Squawk Box’, Mike Novogratz, CEO of Galaxy Digital, provided an in-depth analysis of the current state…

Non-Fungible Items; Picking up Where NFTs Left off — COZ Co-Founder Tyler Adams

1 Mins read
Many have already pronounced the death of NFTs, and in part, they are correct. Amidst the fervor of the NFT hype cycle,…



Leave a Reply

Your email address will not be published. Required fields are marked *