Bitcoin

Impact

Spot

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/sec-greenlights-11-spot-bitcoin-etfs-impact-on-btcs-price/" data-wpel-link="internal">SEC Greenlights 11 Spot Bitcoin ETFs: Impact on BTC’s Price</a><br></p>
<p style="text-align: justify"><strong><a href="https://en.coin-turk.com/bitcoins-future-and-expectations-for-etf-approval-in-the-cryptocurrency-market/" data-wpel-link="internal">Bitcoin</a></strong>‘s 15-year history reached a pivotal moment on January 10, 2024, when the US Securities and Exchange Commission (SEC) finally gave the green light to 11 spot Bitcoin ETFs to be traded in financial markets. This approval was long-awaited by both traditional investors and the crypto world, but the development turned into a “buy the rumor, sell the news” event, followed by a 15% drop in BTC’s price within a week.</p> 
<h2 style="text-align: justify" id="strong-why-is-bitcoin-s-price-falling-despite-etf-approval-strong"><strong>Why Is Bitcoin’s Price Falling Despite ETF Approval?</strong></h2> 
<p style="text-align: justify">Many experts speculated whether the price had already factored in the spot ETF approval, as BTC had risen from about $30,000 to $45,000 before the approval. Those who believed Bitcoin would fall immediately after the launch of spot ETFs in the US were initially disappointed when it surged above $49,000 on the first day of trading.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-305270" src="https://coin-turk.com/wp-content/uploads/2024/01/Bitcoin-Neden-Dustu.jpeg" alt="" width="1280" height="720"></p> 
<p style="text-align: justify">However, the situation quickly changed with a $3,000 drop on the first trading day in the US and a $4,500 drop on the second day. BTC has since been unable to recover its losses and is currently struggling to rally back above $42,000.</p> 
<p style="text-align: justify">According to the world-famous <a href="https://newslinker.co/category/ai/" data-wpel-link="exclude">AI</a> chatbot rival Perplexity, one reason behind the recent drop in Bitcoin is investors who took positions expecting a rise before the ETF approval began to take profits by converting some of their assets to cash. Other possible reasons include some investors having overestimated the immediate impact of the ETF approval and their expectations not being met, as well as confusions regarding the nature of ETFs, such as how creation and redemption work.</p> 
<p style="text-align: justify">Perplexity also added that “the increased volatility and liquidation of leveraged positions following the ETF approval could have affected Bitcoin’s price.”</p> 
<h2 style="text-align: justify" id="strong-there-s-some-good-news-strong"><strong>There’s Some Good News</strong></h2> 
<p style="text-align: justify">While analysts are divided over the immediate impact of the SEC’s ETF approvals on BTC’s price, most are confident about the positive long-term effects on the price of most cryptocurrencies. Initial data shows that the 11 ETFs have attracted over $2 billion in inflows, indicating a high level of interest in these investment products.</p> 
<p style="text-align: justify">The popular AI chatbot also expressed a similar view, noting that BTC’s price could show strength again, especially considering the block reward halving set to occur in April:</p> 
<blockquote> 
 <p style="text-align: justify">Despite this short-term decline, some analysts and investors expect an upward surge in Bitcoin’s price over time due to the approval of ETFs and other developments in the crypto world.</p> 
</blockquote> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/sec-greenlights-11-spot-bitcoin-etfs-impact-on-btcs-price/" data-wpel-link="internal">SEC Greenlights 11 Spot Bitcoin ETFs: Impact on BTC’s Price</a></h5>

SEC Greenlights 11 Spot Bitcoin ETFs: Impact on BTC’s Price

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