The price of Bitcoin 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 collapse further
Bitcoinhyper, a cryptocurrency analyst, has offered his insights on the current state of Bitcoin. The analyst revealed his predictions to the community during one of his YouTube videos.
According to him, BTC is currently experiencing a decline, which could potentially lead to a further price drop. Initially, Bitcoinhyper noted an increase in the price of Bitcoin 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 $49,000 price. “Unfortunately, we received a significant dump, and rejection, of $49,000,” he stated.
The analyst highlighted that BTC was in the air for several days before the ETF was approved, with experts expecting the crypto to reach $50,000. So, in a surprising turn of events, the price of the asset fell by about 16%.
Despite the approval of the Bitcoin spot ETF, market perception quickly took an unpleasant turn. The correction took retail investors by surprise as they were unprepared and assumed the price would rise.
With the crypto asset experiencing such a price drop, it is believed that the market will experience a massive liquidation. Remarkably, liquidations during this decline were not as large as expected.
Bitcoinhyper noted that approximately $18.8 million in short positions were liquidated during the decline, which is less than expected. The news caused traders to become overconfident as they ignored the possibility of a correction.
No positive impact on BTC price despite substantial inflows
Allegedly Bitcoin saw a massive inflow of $1.18 billion into digital asset funds globally following ETF approval. Despite the significant inflow of capital, the expected impact of increasing the price of BTC has not yet been realized.
On Monday, January 15, the price of BTC fell below the $42,000 support level as traders turned to Ethereum and other tokens. The approval of ETFs would 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 options for one Ethereum ETF.
Currently, Bitcoin is trading at $42,951, indicating a drop of over 7% in the past seven days. Trading volume is up 3.86% over the past 24 hours, while the market cap is up 0.75%, according to CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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