Bitcoin’s Value Plummets to $38,600
In a surprising turn, Bitcoin’s value has fallen to $38,600, its lowest point since early December. This drop comes after the recent excitement about the introduction of spot Bitcoin Exchange-traded funds (ETFs).
Recent Decline in Bitcoin’s Value
As excitement over the newly launched spot Bitcoin ETFs surged, the leading cryptocurrency experienced a 5.4% drop within the last 24 hours. Additionally, there was a notable 9% decline over the week and a substantial 10% drop over the past month.
SEC’s Approval and “Sell-the-News” Reaction
Post the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs on January 10, there was a classic “sell-the-news” reaction, intensifying profit-taking activities. This approval worsened the downward trend.
Insights from Ali Chart: What Do the Patterns Tell Us?
Renowned analyst Ali Chart examined Bitcoin’s historical price movements and found a significant correlation with Fibonacci retracement levels. Drawing parallels with the past two bull cycles, Chart observed a consistent retracement to the 50% Fibonacci level after reaching the 78.6% Fib.
Why is the Market in Turmoil?
The cryptocurrency market’s ongoing correction is being complicated by outflows from Grayscale’s Bitcoin Trust (GBTC). A JPMorgan report predicts increased pressure on Bitcoin prices in the coming weeks. Investor apprehension is compounded by the absence of expectations for a reduction in interest rates by the US Federal Reserve.
But There is Still Hope!
Despite these challenges, there’s a silver lining on the horizon with the upcoming Bitcoin halving event in April. This event could potentially offer support to the current market scenario, injecting optimism amid uncertainties.
Hot Take
The recent plummet in Bitcoin’s value, combined with the approval of spot Bitcoin ETFs, has led to a substantial decline in the cryptocurrency’s prices. Analysts predict a potential correction with the possibility of Bitcoin revisiting the 78.6% Fibonacci retracement level. Despite the current turmoil, the upcoming Bitcoin halving event in April offers hope for an optimistic market scenario.
By
By
By
By