Bitcoin Price Plummets Following Bitcoin ETF Approval: Binance and Kaiko Share Reports

After the approval of the Bitcoin ETF, a new trend emerged in the cryptocurrency market as Bitcoin holders began to sell their coins for short-term profits, causing a significant impact on the price of Bitcoin. This selling pressure has been particularly felt on Binance, according to data from Kaiko.

On the day that Bitcoin ETF trading commenced, the price of Bitcoin experienced a surge, reaching up to $48,975. However, after a massive sell-off of $50 million, the current trading price of Bitcoin stands at $42,820.

The approval of the Bitcoin ETF made headlines following much anticipation and predictions. This approval led to a two-year high in the price of Bitcoin, but since then, it has fallen by approximately 12% due to increased selling on major exchanges such as Binance, OKX, and Upbit.

Despite this, Binance’s spot market CVD showed positive signs last week, indicating an outflow of capital equivalent to around 5,000 BTC. Itbit and OKX reported that Upbit experienced the second-largest net capital outflow.

Why did this happen? The anticipation among analysts and the frenzy among investors to buy Bitcoin skyrocketed when the approval of the Bitcoin ETF was on the horizon. Investors who purchased Bitcoin with the expectation that the ETF approval would boost its price later sold their holdings for short-term gains, leading to a surge in selling pressure.

Tags: Bitcoin