The Aftermath of the ETF Approvals
In mid-January, the US Securities and Exchange Commission (SEC) approved nearly a dozen spot BTC ETFs to launch on local exchanges. This long-awaited decision resulted in a significant price run-up for Bitcoin in Q4 ’23. However, after the ETFs launched, Bitcoin experienced a sharp decline of over ten thousand dollars in the following weeks.
The ETF Aftermath
Financial experts anticipated that the US SEC would finally approve spot Bitcoin ETFs in the country. This anticipation caused Bitcoin’s price to surge past $40,000 for the first time in two years. On January 10, the US watchdog greenlighted 11 such products, which went live for trading on the next day with record-setting volumes.
Bitcoin initially reacted positively and reached over $49,000 after US exchanges opened. However, the landscape changed later on, and BTC experienced a significant retracement and bottomed at $38,500. Since then, Bitcoin’s price has been less volatile but still positive, currently standing at around $43,000.
The Bottom Was Reached?
After Bitcoin’s decline post-ETF approvals, there is speculation within the community about whether it has reached its bottom. Data from Santiment suggests that this may be the case. Social discussions surrounding Bitcoin surged during the anticipation for the ETFs but have since normalized. This indicates that Bitcoin’s price has gone through post-approval volatility and may be preparing for future events such as the halving in 2024.
Hot Take: Has Bitcoin Bottomed Out After ETF-Related Market Expectations?
Bitcoin’s price experienced significant fluctuations after the approval of spot BTC ETFs by the US SEC. While there was a surge in anticipation leading up to the ETF launch, Bitcoin’s price declined after the initial spike and bottomed out at $38,500. However, it has since recovered and currently stands at around $43,000. The normalization of social discussions around Bitcoin suggests that the asset may have reached its post-ETF bottom and could be preparing for future market events. Only time will tell if this is the case.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content. Owen’s contributions serve as a valuable guide for both seasoned enthusiasts and newcomers, aiding them in navigating the dynamic world of cryptocurrencies with well-researched perspectives. With a meticulous commitment to precision, he empowers informed decision-making in the ever-evolving crypto domain.
