Bitcoin Slumps After ETF Debut, Raising Concerns of a Short-Lived Rally as Investors Opt for Cash

Bitcoin ETF approval sparked a frenzy in the cryptocurrency market, leading to a surge in Bitcoin’s price. However, this excitement was short-lived as investors who had bought Bitcoin in anticipation of the ETF approval started selling their holdings for quick profits. This selling pressure caused a 12% decline in Bitcoin’s value, with major exchanges like Binance, OKX, and Upbit experiencing heightened selling activities.

Despite the sell-offs, Binance’s spot market showed positive signs with a capital outflow of nearly 5,000 BTC. Upbit also witnessed significant net capital outflow. The approval of the Bitcoin ETF by the SEC had initially propelled Bitcoin to a two-year high, but the subsequent sell-offs dampened the market sentiment.

The dip in Bitcoin’s price was a result of investors’ expectations for a price boost after the ETF approval. However, many succumbed to the temptation of short-term gains and decided to sell their Bitcoin holdings. Analysts, such as Ali, have shared their insights on the current condition of Bitcoin. According to Ali, Bitcoin’s price is following a specific pattern, with a temporary dip to $34,000 expected before a resilient bounce-back to potentially reach $57,000 in the future.

With various market signals and price fluctuations, the upcoming week in the cryptocurrency market promises to be exciting.