Many withnessed the Bitcoin ETF approval earlier on January 2024,but do we really know what an ETF is?
According to investopedia -“An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund”
Bitcoin ETF was more like posing bitcoin ,a cryptocurrencies,into the stock market space
With the description of ETF above,it’s a good development and can bring about good moves in bitcoin market.
LIVE CRYPTO RATES FOR TODAY
| Name | Price | 24H (%) |
|---|---|---|
 Bitcoin(BTC) | $84,647.64 | -0.70% |
 Ethereum(ETH) | $1,582.90 | -2.27% |
 XRP(XRP) | $2.06 | -1.22% |
 Cardano(ADA) | $0.62 | -1.52% |
 Bitcoin Cash(BCH) | $333.46 | -0.57% |
 Litecoin(LTC) | $76.56 | 0.80% |
 Monero(XMR) | $216.46 | 1.81% |
 IOTA(IOTA) | $0.164901 | 0.80% |
 Dash(DASH) | $21.35 | 0.49% |
But the question still remains,”Why did bitcoin price fall after ETF approval”.
As noticed,the price of bitcoin has fallen to almost 10% since the approval of the Bitcoin ETF.
Many factor led to this fall,but cryptofxrate will be going into the Three (3) major factors in details.
1) High CEX bitcoin inflows:
Since December 2023,The net deposit of bitcoin to top centralised exchanges aroused to over $2 billion.Practically,An increase in the amount of deposits triggers a sell fud,(Who and why the sales)
2) Average holders outcame Long term holders:
Prior and during the Bitcoin ETF era ,The balance between the average holders and long term holders became unstable and had a peak to the averge holders.
The short term hodlers were busy reducing their holdings whilst the long term holders were not accumulating.
3) Low trading volume:
As compared to the previous bull market, the recent trading volume prior and during the Bitcoin ETF was to low to trigger a bull market as of old.This in particular, could be caused by the reduction in the long term holders .
Nevertheless,Analyst predicts a downward movement to increase the driving force of the expected bull run.
