Bitcoin Faces Bearish Momentum Despite ETF Approval
The price of Bitcoin is currently experiencing a bearish moment, despite the recent approval of multiple Bitcoin Spot Exchange-Traded Funds (ETFs). This has raised speculations about the future of the token.
Predictions of Further Price Collapse
Cryptocurrency analyst Bitcoinhyper has offered his insights on the current state of Bitcoin. According to him, BTC is currently undergoing a decline that could potentially lead to a further collapse in price.
Bitcoinhyper noted that BTC initially saw an upswing in price to $49,000 following the approval of BTC spot ETFs by the SEC. However, there was a notable decline from this price mark.
Surprising Market Reaction
Experts anticipated that the price of Bitcoin would rise to $50,000, but instead, it witnessed a drop of about 16%. This correction took retail investors by surprise as they had assumed that the price would continue to rise.
Less Liquidation Than Expected
Despite the collapse in price, liquidations were not as large as anticipated. Approximately $18.8 million in short positions were liquidated during the decline.
This news caused traders to become overconfident and ignore the possibility of a correction.
No Positive Impact on BTC Price Despite Inflow
Following ETF approval, Bitcoin saw a significant inflow of $1.18 billion in digital asset funds worldwide. However, this influx of capital did not have the anticipated impact on boosting the price of BTC.
The price dropped below the support level of $42,000 as traders turned to Ethereum and other tokens.
Market Becoming Less Enthusiastic About Bitcoin ETFs
The market is now becoming less enthusiastic about Bitcoin ETFs and is instead discussing the potential for an Ethereum ETF.
Current State of Bitcoin
Bitcoin is currently trading at $42,951, indicating a decline of over 7% in the past seven days. Its trading volume has increased by 3.86% in the last 24 hours, while its market cap has increased by 0.75%.
Hot Take: Bitcoin’s Price Faces Uncertainty Despite ETF Approval
Despite the approval of Bitcoin Spot Exchange-Traded Funds (ETFs), the price of Bitcoin continues to face uncertainty and a bearish momentum. The recent decline in price has surprised many investors who expected it to rise further after the ETF approval. This drop has led to discussions about the potential for further collapse in price and a massive liquidation in the market. Additionally, despite a significant inflow of capital into digital asset funds following the ETF approval, Bitcoin’s price has not experienced the anticipated boost. As traders turn to other tokens like Ethereum, the enthusiasm for Bitcoin ETFs seems to be diminishing. It remains to be seen how Bitcoin’s price will evolve in the coming days and whether it can regain bullish momentum.
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