Could the Approval of Post ETF Result in Bitcoin Price Falling to $32K?
The cryptocurrency industry had high expectations that the approval of the spot Bitcoin ETF would lead to a significant increase in the price of Bitcoin. It was believed that the approval would have a noticeable impact on mainstream media and Bitcoin itself. Many individuals in the crypto industry expressed their agreement with this belief. However, as of Friday, Bitcoin is trading at $42,000 and continues to face challenges, currently trading at $42,939.
One possible reason behind the drop in price is the selling pressure from Grayscale’s GBTC and the FTX position, as stated by Anthony Scaramucci. He also reassured investors that this selling pressure would be resolved soon. Investors are hopeful that this liquidation is temporary and that Bitcoin will experience a substantial surge in value.
On Friday, Coinbase shares experienced a decrease of nearly 7.4%, and Bitcoin miners Marathon Digital, Hut 8, and Riot Platforms followed suit, losing almost 10% in value.
The approval of the spot Bitcoin ETF initially caused a significant surge in the price of Bitcoin, with it trading at $47,000 the day after approval. The trading volumes also increased by approximately $7.6 billion since then. However, the decline in Bitcoin’s price occurred when spot Bitcoin ETF trading began. Short-term investors were expecting immediate profits, but long-term holders of Bitcoin remain optimistic, viewing this price manipulation as temporary.
A recent report by CryptoQuant predicted that Bitcoin may drop below $32,000 following the approval, which could be attributed to the “Sell The News” trend.
Prior to the approval of the spot Bitcoin ETF, prominent industry analyst Cathie Wood from Ark Invest expressed optimism about the surge in Bitcoin’s price. She even suggested that it could reach $1.5 million by the end of 2030. Cathie Wood stated, “We think the probability of the bull case has increased with this SEC approval. This is a green light.” Standard Chartered also predicted that Bitcoin may reach $200,000 by the end of 2025.
Tags: Bitcoin, Bitcoin ETF