Recent positive developments in the world of cryptocurrencies have taken an amazing turn. Following the launch of the long-awaited Bitcoin (BTC) exchange-traded funds (ETF) in the US, the price of Bitcoin has risen to nearly $49,000, the highest level in two years. But this progress did not last long. The market is now going through an uncertain period and the price of BTC has dropped by double digits. This decline has also led to a complete change in market sentiment.
Bitcoin faces a 40% collapse risk, and Arthur Hayes warns of two dangers
-
Bitcoin news
The hype of ETFs and its impact on the market
The impact of the Bitcoin ETF on the market appears to be weakening. Investors appear to be taking profits amid the reduced noise, which is reflected in Bitcoin’s movements. This is especially noticeable in Fear and Greed Index in CryptocurrenciesIt is a basic indicator of market sentiment. According to this index, between January 11 and 14, we witnessed a steady decline from 76 to 60% in the index, i.e. a decline of 21%. Although the index is still in the greed zone, this decline indicates a decline in buying interest in the market.
The hype surrounding the arrival of Bitcoin ETFs was of course enormous, but now that ETFs have actually been approved, that hype has quickly died down. It appears that the market was already anticipating the ETFs’ approval, or had already been “priced in.”
Ethereum ETFs: What’s next?
The focus in the cryptocurrency world is now shifting from Bitcoin ETFs to the potential approval of a product similar to Ethereum (ETH). It is still unclear whether and when these investment products of the largest altcoins will appear on the market. However, JPMorgan, the world’s largest investment bank, does not believe the opportunities are great.
These recent developments in the cryptocurrency space show that the initial excitement surrounding Bitcoin ETFs is fading. This phenomenon highlights the dynamic and sometimes unpredictable nature of the cryptocurrency market. As Bitcoin struggles to maintain its position above $40,000, attention is turning to new opportunities such as Ethereum ETFs.
Post views: 0
“Lifelong zombie fanatic. Hardcore web practitioner. Thinker. Music expert. Unapologetic pop culture scholar.”