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The price of Bitcoin appears to be experiencing a bearish moment in recent days despite the approval of several Bitcoin Spot exchange-traded funds (ETFs), which has raised speculation about the future of the token.
Bitcoin could see another collapse
Bitcoinhyper, a cryptocurrency analyst, offered his views on the current state of Bitcoin. The analyst revealed his predictions to the community during one of his YouTube videos.
According to him, BTC is currently experiencing a decline, which could potentially lead to a further price collapse. Early on, Bitcoinhyper noted a rise in the price of Bitcoin to $49,000 following the approval of BTC spot ETFs by the SEC.
However, the market did not react as expected and there was a notable decline from the $49,000 price. “Unfortunately, we had a significant loss and rejection of $49,000,” he said.
The analyst pointed out that BTC was rising several days before the ETF approval, with experts predicting the crypto to hit $50,000. So, in a surprising turn of events, the price of the asset saw a decline of around 16%.
Despite the approval of the Bitcoin spot ETF, market perception quickly took an unpleasant shift. The correction surprised retail investors as they were unprepared since they had assumed the price would increase.
With such a collapse in the price of the crypto asset, it is believed that the market will experience a massive liquidation. It is notable that during this decline, liquidations were not as large as expected.
Bitcoinhyper noted that during the decline, around $18.8 million in short positions were liquidated, which is less than expected. The news caused traders to become overconfident while ignoring the possibility of a correction.
No positive impact on the price of BTC despite a significant inflow
It seems that Bitcoin saw a huge inflow of $1.18 billion in digital asset funds worldwide after the ETF was approved. Despite the significant inflow of capital, the expected impact of the BTC price increase has not yet materialized.
On Monday, January 15, BTC price fell below the $42,000 support level as traders turned to Ethereum and other tokens. The approval of ETFs could be a “sell the news“Moment, as BTC had fallen 16% since the announcement.
Currently, it is crucial to see that the market is becoming less and less enthusiastic about Bitcoin ETFs. Many people are now discussing the possibility of a Ethereum ETF.
Currently, Bitcoin is trading at $42,951, indicating a decline of over 7% over the past seven days. Its trading volume increased by 3.86% in the last 24 hours, while its market capitalization increased by 0.75%, according to CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the views of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
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