Bitcoin’s price has experienced fluctuations after the approval of the cryptocurrency’s Exchange-Traded Fund (ETF). Bitcoin surpassed $49,000 for the first time in over two years but quickly retreated to the previous range of $46,000 as the market witnessed mixed reactions.
Bitcoin reached $49,000 per unit late yesterday, marking the first time since December 2021 when Bitcoin spot exchange-traded funds (ETFs) began trading in the United States amidst high expectations. The largest cryptocurrency by market capitalization rose from under $46,000 at the beginning of the day to over $47,000 last night, then surged to $49,042 per unit. However, this price level was short-lived as Bitcoin quickly dropped below $46,000.
Data from the London Stock Exchange Group (LSEG) indicates that Bitcoin ETFs recorded trading volumes totaling $4.6 billion as of yesterday afternoon. Among the 11 funds, products from two major asset management giants, BlackRock and Fidelity, dominated the trading volume. This figure is considered relatively strong for a newly established ETF, according to market analysts.
Expert opinions on Bitcoin ETFs are divided, somewhat influencing market sentiment. Many agree that this milestone allows investors to capitalize on the volatile price movements of digital currency without the complications of delving into numerous market concepts such as self-custody, blockchain, and private keys.
https://bitforum.net – Crypto forum discussions about all aspects of cryptocurrency bitforum socialfi #InnovationSocialNetwork
Some people think Bitcoin ETF, which are like investment funds for Bitcoin, are teaming up with it’s original “opponents” – traditional finance, big banks, and Wall Street.
This might break the initial idea of Bitcoin, which promised to be decentralized, empower people, and give financial freedom without relying on traditional financial organizations.
Bitcoin’s core remains decentralized, developed by open-source programmers. Bitcoin ETFs provide a tool for institutional investors, but their impact on Bitcoin’s price is straightforward - more funds lead to higher prices, and vice versa.
This doesn’t alter Bitcoin’s decentralized nature; it’s just a new way for traditional investors to enter the market.
Otherwise it make crypto become a proper type of “alternative investment asset”.
Investing in ETFs means the reduction in transaction volume on the bitcoin network ~> would result in miners earning less, as miners primarily earn money by processing transactions.
Miners are still generating income through the processing of transactions, when Bitcoin ETF processed. Nothing changed with the technology of Bitcoin.
My target for Bitcoin this cycle is around 120k. I don’t care for the short-term move of Bitcoin. Hold strong :))
Bitcoin price is dropping 2 consecutive days since ETF approved.
3rd day of the falling price, 42k is seem like the support zone.