Bitcoin has dropped over 20% from its three-year high reached shortly after the U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin exchange-traded funds (ETFs) in January. Analysts cite a combination of profit-taking after the long-awaited event and broader market uncertainty as reasons for the correction. Bitcoin Retreats Post-ETF Approval Surge The price surge in anticipation of the ETF approval saw Bitcoin reach nearly $49,000 on January 11th. However, since the green light for the ETFs, the cryptocurrency has retreated steadily, trading at around $39,500 at the time of writing. Related Reading: Lone Survivor: Ronin (RON) Rallies 20% As Top 100 Cryptos Bleed According to some analysts, they have seen a classic “sell the news” scenario unfold. Investors had largely priced in the ETF approval for months, and once it actually happened, some took the opportunity to lock in profits, they added. While nearly $4 billion has flowed into the new spot ETFs, a significant portion, analysts note, came from existing funds like Grayscale which transitioned into an ETF, suggesting less net new investment than what the headline numb ..
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