The price of bitcoin suddenly and unexpectedly fell on news of a possible ETF rejection, according to a report from Matrixport, taking most of the altcoin market with it. Since then, prices have recovered slightly, with $btc currently trading at the $42,900 level.
However, the surprise news and subsequent crash are a stark reminder of the unpredictability and volatility of the cryptocurrency market, where basically anything can (and sometimes does) happen.
crypto cycles generally follow a simple pattern: three years up, one year down. 2022 was a year of decline, 2023 was a year of recovery and 2024 should be a very positive year if the past repeats itself and if what most analysts seem to believe is true. But that doesn't mean that the path to a bull market isn't without major obstacles and setbacks, as previous markets have also shown. In any case, overall sentiment remains high and bitcoin ($btc) is still trading near the $45,000 level for the moment despite the market shakeout.
As the New Year began with very bullish momentum, euphoria swept the markets and open interest soared. Traders rushed to open overleveraged positions and got burned. However, in the long term, this pullback probably represents nothing more than a blip on the radar and a healthy disappearance of leveraged long positions, as the direction of the wind has clearly reversed. Pre-sale funding remains strong, including the pre-sale of the Galaxy Fox, which has surpassed $2.3 million.
galactic fox's ($GFOX) The success of pre-sale funding is to be seen, and $btc's recent yearly high indicates further incoming growth, even despite the FUD ETF, which could well, in the end, turn out to be just that: someone FUD in the market. In any case, it is best to fasten your seat belt; things are getting exciting.
bitcoin ($btc) Sees Price Return Above $45,000
bitcoin started the year strong and a well-kept secret among traders is that buying year-to-date highs is an excellent risk-adjusted trade. When a new high is reached, it usually indicates that another one is coming. $btc's pullback after the ETF news is definitely something to watch, as the price could fall back to the $36,000 level if the ETF news turns out to be the black swan that some traders were expecting, but even If that is the case, the halving event could be enough to prevent further losses and $btc could recover sharply.
And in any case, delayed or not, the Spot ETF is almost certainly coming sometime this year. While the short-term impact may be overstated, one certainly needs to look at the long-term impact of making $btc accessible to institutional funds.
The pullback was a classic sell-off. When open interest peaks and traders are overleveraged, large institutions/traders target these liquidation zones. When everyone is overleveraged, it's easy to fall off a cliff. This reduction is an excellent example and appears to have been perfectly timed and executed.
So will 2024 still be the year $btc finally trades above six figures? The good news for holders is that we are almost halfway there and the year has only just begun.
Galaxy Fox ($GFOX) Raises Over $2.3 Million
galactic fox crushes milestone after milestone and has already raised over $2.3 million. Stage 6 is coming to an end, and anyone who joins fast enough to join before Stage 7 will see a juicy 15% boost, provided the pre-sale is successful and they sell at a higher price than they bought at.
Introducing a new duality to the P2E genre, Galaxy Fox captures the explosiveness and classic deflationary tokenomics of a memecoin along with its runner gameplay. This protocol promises to create everything from staking rewards to real-world products to an nft collection and marketplace. And this holistic approach to ecosystem activity explains its initial success.
Buy and sell taxes fund staking rewards, meaning no inflationary pressure and, better yet, higher staking payouts as ecosystem activity grows. Galaxy Fox is one of the few protocols that directly shares protocol growth with its holders.
Learn more about $GFOX here:
Visit the Galaxy Fox pre-sale | Join the community
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