The news about the Bitcoin ETF was expected to generate enthusiasm among crypto investors, but the market seems to give news in the opposite direction.
He Bitcoin trades higher this Sunday, December 31 and quote around US$42,600 on the last day of 2023. Investors and analysts do not lose hope that it will soon reach US$43,000, despite the 2.8% drop in the mother cryptocurrency in the last 7 days.
On Friday had presented mixed for the main cryptocurrency in coincidence with the expiration of the Bitcoin optionsan event that was expected to instill greater volatility in a market, which since last December 8, when it reached its annual record close to US$45,000, seems to show indecision and vacillates between US$42,500 and US$43,000.
Bitcoin: ETF might not be as significant
On the other hand, a Reuters report reported that US SEC Could Contact Bitcoin ETF Applicants Early Next Week and this development was expected to be crucial for the crypto market, allowing investors to trade Bitcoin-backed ETFs on regulated exchanges. However, that expectation appears to be deflated following the news that market activity dropped in reaction to the news.
Options data showed that implied volatility for Jan. 12 options, closely linked to the ETF, decreased and trading volume for these options was significantly low as they accounted for just 2% of the daily total. Thus, analysts warn that the approval could have a limited impact on prices.
Rate policy and Bitcoin
The main concern is that if a downward trend persists in Bitcoin and fails to recover the $43,000 area, the decline could persist. However, it is not ruled out that in 2024, another factor could prompt a rebound: the reversal of the monetary policy of the United States Federal Reserve (FED).
As for other cryptocurrencies, Ethereum experiences a weekly recovery and approaches $2,300, after having fallen in recent days, while Solana shows a strong weekly decrease of almost 10% and is around US$103. The general decline in the cryptocurrency market has dragged down the market capitalization.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
