The price of bitcoin It appears to be experiencing a bearish moment in recent days despite the approval of multiple bitcoin spot exchange-traded funds (ETFs), which has sparked speculation about the future of the token.
bitcoin could suffer a further collapse
Bitcoinhyper, a cryptocurrency analyst, has offered his insights on the current state of bitcoin. the analyst sleepless his predictions to the community during one of his YouTube videos.
According to him, btc is currently experiencing a decline, which could lead to a further price collapse. Initially, Bitcoinhyper noted a rise in bitcoin price to $49,000 following the approval of btc spot ETFs by the SEC.
However, the market did not react as expected and there was a notable drop from the price of $49,000. “Unfortunately we received a significant drop, and in rejection, of $49,000,” he stated.
The analyst highlighted that btc was on the rise for several days prior to the ETF's approval, and experts anticipated the cryptocurrency would reach $50,000. Thus, in a surprising turn of events, the price of the asset experienced a drop of around 16%.
Despite the approval of the bitcoin spot ETF, market sentiment quickly took an ugly turn. The correction caught retail investors by surprise, who were unprepared as they had assumed the price would rise.
Since the crypto asset experiences such a collapse in price, it is believed that the market will see a massive sell-off. Surprisingly, during this decline liquidations were not as large as had been anticipated.
Bitcoinhyper noted that during the decline, around $18.8 million in short positions were liquidated, less than expected. The news caused traders to become overconfident and ignore the possibility of a correction.
No positive impact on btc price despite substantial inflow
bitcoin Reportedly Mountain range a huge inflow of $1.18 billion into digital asset funds worldwide following the approval of the ETF. Despite the significant capital inflow, the anticipated impact of the btc price increase has yet to materialize.
On Monday, January 15, btc price fell below the $42,000 support level as traders turned to ethereum and other chips. The approval of ETFs could be a “sell the news” moment, as btc had fallen 16% since the announcement.
As of now, it is crucial to note that the market is becoming less enthusiastic about bitcoin ETFs. Many people are now discussing the possibility of a ethereum ETF.
bitcoin is currently trading at $42,951, indicating a drop of over 7% in the last seven days. Its trading volume increased by 3.86% in the last 24 hours, while its market capitalization increased by 0.75%, according to CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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