Why Bitcoin Price Dropped Today? Here Are The Major Factors Driving The Downtrend
The post Why Bitcoin Price Dropped Today? Here Are The Major Factors Driving The Downtrend appeared first on Coinpedia Fintech News
Bitcoin has undergone a 5% decline in the last 24 hours, settling at $43,791 after a recent surge above $48,000 prompted by the introduction of spot Bitcoin ETF trading in the U.S. According to Dan Ripoll, Swan Bitcoin’s managing director, attributes this downturn to the time brokerage firms’ compliance departments took to approve new products.
Notably, major broker-dealers like Vanguard, UBS, Citi, and Merrill Lynch have either restricted or completely disallowed retail clients from purchasing spot Bitcoin ETFs. Vanguard’s decision, citing a misalignment with their “investment philosophy,” adds complexity to the Bitcoin ETF landscape, potentially resulting in customer losses for adopting firms, as predicted by Ripoll.
Analyst Insight on —-What’s Behind Bitcoin Bearish Turn?
In a recent X post, cryptocurrency analyst Ash Crypto delves deeper into the factors influencing Bitcoin’s downturn after the historic spot ETF approval. According to Ash, the dissipation of pre-approval speculation has played a role, leaving investors with nothing new to anticipate post-approval.
This has led to profit-taking and disappointment among those who expected a substantial pump to $55,000. Additionally, given Bitcoin’s impressive surge from $15,400 to $49,000 on ETF-driven FOMO, a natural correction was deemed inevitable, presenting a “sell the news” scenario for those who entered the market at lower price points.
Bitcoin or Ethereum, investors are in a split?
Ethereum rose 9.1% last week, outperforming bitcoin. The analyst notes a shift in investor behavior, with some reallocating funds from Bitcoin to Ethereum (ETH). This move is attributed to the anticipation of an upcoming ETH spot ETF and the perception that ETH is currently undervalued compared to its potential.
Also Read : Bitcoin (BTC) Price To Hit $100K On This Date : Predicts Crypto Analyst
Overlooked Positives Amid Downturn
Despite the downturn, Ash highlights several positive aspects that might be overlooked by the market. The Bitcoin ETF, despite the price decline, achieved a historic volume of $4.3 billion, marking a significant milestone in the history of ETFs. The fact that Bitcoin is now accessible to Wall Street is seen as a positive development, with expectations that trillions of dollars could flow into the cryptocurrency market over time. Additionally, the approval of a Bitcoin ETF is viewed as a step toward building trust in the broader crypto market.
While sharing his personal opinion, he expresses a bullish outlook, believing that Bitcoin ETFs will gain popularity on Wall Street, leading to substantial allocations from companies. This, in turn, could propel Bitcoin to reach heights of $100,000 to $200,000 and beyond. The analyst advises patience and resilience for investors during market fluctuations, emphasizing the potential for long-term gains.
