Bitcoin Price Drops Below $40,000 Amid ETF Approval Hype
Despite the anticipation surrounding the approval of spot Bitcoin exchange-traded funds (ETFs) and the expectation of new highs for the cryptocurrency, Bitcoin’s price has fallen below the significant psychological level of $40,000. Currently trading around $39.5k, this is the first time since December 4, 2023, that Bitcoin has dropped below this price range. Crypto analytics platform Santiment describes this as a “bloodbath for most of the crypto sector.”
Santiment also notes a decline in discussion about decentralized finance (DeFi) assets, with a 35% decrease in chatter about flagship DeFi asset Bitcoin and a 21% drop in conversation about Ethereum.
FUD Enters the Picture
Following the hype surrounding spot Bitcoin ETFs and increased investor interest, fear, uncertainty, and doubt (FUD) is starting to emerge. However, Santiment suggests that this could create opportunities for price bounces when it reaches its peak.
Bitcoin Price Analysis
As of press time, Bitcoin is trading at $39,460, marking a 3.12% decrease in the last 24 hours. It has also experienced a 7.61% drop over the past seven days and lost 9.64% of its value in the past month.
It is worth noting that all Bitcoin ETF issuers except Grayscale have collectively purchased over 86,320 BTC at an average price of $42,000. This investment of $3.63 billion may indicate a potential top formation for the price of Bitcoin.
Hot Take: Bitcoin Falls Below $40K Amidst ETF Approval Hype
The much-anticipated approval of spot Bitcoin exchange-traded funds (ETFs) has not resulted in new highs for the cryptocurrency. Instead, Bitcoin’s price has dropped below the psychological level of $40,000. This decline has led to a decrease in discussion about decentralized finance assets, including Bitcoin and Ethereum. However, fear, uncertainty, and doubt are starting to emerge, creating potential opportunities for price bounces. As of now, Bitcoin is trading at $39,460 and has experienced a significant drop over the past month. The collective purchase of BTC by ETF issuers may suggest that the price of Bitcoin has reached its peak.
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