Why did bitcoin market price fall after ETF approval?

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 Price24H (%)
Bitcoin(BTC)
$66,772.82
0.65%
Ethereum(ETH)
$3,235.13
1.54%
XRP(XRP)
$0.55
0.40%
Cardano(ADA)
$0.50
-2.33%
Bitcoin Cash(BCH)
$510.22
-0.86%
Litecoin(LTC)
$85.14
-0.58%
Monero(XMR)
$122.64
-1.09%
IOTA(IOTA)
$0.246224
1.09%
NEM(XEM)
$0.041426
2.83%
Dash(DASH)
$31.56
0.36%

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 inĀ  the long term holders .

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Nevertheless,Analyst predicts a downward movement to increase the driving force of the expected bull run.

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See also  Crypto Market Update (10 April 2019)

 

Updated: January 20, 2024 — 3:22 am

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