🚨Bitcoin falls on ETF launch day! For what ?
✅The launch of the very first Bitcoin ETFs on the American market was seen as a historic event in the crypto world. Alas, the price of the flagship crypto disappointed by posting a drop on the same day of the arrival of these famous ETFs. Zoom in on this unexpected fall.
🚨Euphoria brutally showered during the launch of ETFs
✅The crypto community was impatiently awaiting the green light from the SEC, the American stock market watchdog, for the launch of ETFs replicating the price of bitcoin. Approval finally came on January 11, 2024, paving the way for 10 Bitcoin ETFs to begin trading on the New York Stock Exchange that same day.
✅Such was the enthusiasm that the price of bitcoin quickly climbed above $49,000 in the first hour of trading, flirting with the psychological level of $50,000. Volumes exploded from the opening, notably for the BlackRock ETF whose trading exceeded $500 million just 60 minutes after kickoff.
✅But the euphoria quickly dissipated. In the space of 2 hours, the price of bitcoin fell below $46,000. Thus erasing a large part of the initial gains. An unexpected reversal which dampened the hopes of investors betting on an upward surge.
🚨Possible causes of this disillusionment with bitcoin
✅How can we explain this sudden drop despite the promising arrival of ETFs? Several hypotheses are circulating among market observers.
✅Some evoke a simple movement of profit-taking after the morning rise, all the more tempting as the symbolic bar of 50,000 dollars blocked the price. The conversion of the Grayscale Bitcoin Trust (GBTC) fund to an ETF could also have generated sales of Bitcoin (BTC).
