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You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/u-s-sec-greenlights-bitcoin-etfs-market-impact-and-future-prospects" rel="noopener noreferrer nofollow">U.S. SEC Greenlights Bitcoin ETFs: Market Impact and Future Prospects</a> 
On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved 11 spot <a href="https://en.bitcoinhaber.net/bitcoin-surpasses-41000-as-us-inflation-slows-down" rel="noopener noreferrer nofollow">Bitcoin</a> ETFs, marking a significant milestone for Bitcoin’s global legitimacy in its 15-year history. This long-awaited move was anticipated by both traditional investors and the crypto community. However, following the announcement, Bitcoin’s price dropped by 15% within a week, a classic “buy the rumor, sell the news” scenario.
Prior to the ETF approval, Bitcoin’s price had surged from around $30,000 to approximately $45,000, leading to speculation about whether the news had already been priced in. Initially, skeptics of a post-ETF launch price drop were proven wrong when Bitcoin rose above $49,000 on the first day of trading. Yet, the price fell by $3,000 on the first trading day and by an additional $4,500 on the second, struggling to recover since then, now battling below $42,000.
According to Perplexity, a competitor to the viral AI chatbot ChatGPT, the recent downturn in Bitcoin’s price can be attributed to profit-taking by investors who had taken positions in anticipation of a pre-ETF approval rally and decided to liquidate a portion of their assets. Other factors include exaggerated expectations of the ETF’s immediate impact and confusion over the ETF’s mechanics, such as creation and redemption processes.
Perplexity also noted that increased volatility and the liquidation of leveraged positions following the ETF approval could have affected Bitcoin’s price. Despite the short-term impact, analysts believe the SEC’s approval of the ETFs will have a positive long-term effect on cryptocurrency prices. Early data shows over $2 billion inflow into the 11 ETFs, indicating high investor interest.
While the short-term dip persists, some analysts and investors expect an upward trend in Bitcoin’s price over time, influenced by the ETF approvals and other developments in the crypto world, especially considering the upcoming Bitcoin block reward halving in April.
<h5>The post first appeared on BH NEWS: <a href="https://en.bitcoinhaber.net/u-s-sec-greenlights-bitcoin-etfs-market-impact-and-future-prospects" rel="noopener noreferrer nofollow">U.S. SEC Greenlights Bitcoin ETFs: Market Impact and Future Prospects</a></h5>

U.S. SEC Greenlights Bitcoin ETFs: Market Impact and Future Prospects

BH NEWS

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