Bitcoin Price Predicted to Drop Further After ETF Approval
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The approval of the first spot Bitcoin Exchange Traded Fund (ETF) by the US Securities and Exchange Commission (SEC) on January 10, 2024, has not provided the anticipated boost to the cryptocurrency market. Contrary to expectations, both Bitcoin (BTC) and other digital assets have experienced a loss of momentum and value since the historic approval.
Analysts Get Bearish With Bitcoin
Matrixport, a leading crypto financial services platform, has predicted a further decline in Bitcoin’s value to its next support level of $36,739 before an expected rebound driven by favorable market conditions. This projection, outlined in Matrixport’s first report post-ETF approval on January 26, 2024, sheds light on unexpected market dynamics.
The report points out that the demand for the Bitcoin spot ETF fell short of expectations. Additionally, some investors opted to capitalize on profits from the Grayscale Bitcoin Trust (GBTC), which had maintained a premium over the spot price before the ETF launch.
Matrixpoint Has Been off With Previous BTC Predictions
Matrixport, previously anticipating the SEC’s rejection of all 14 Bitcoin ETF applications, had advised investors to consider put options or shorting BTC, predicting a price drop from $45,000 to the range of $36,000-$38,000.
However, the SEC’s approval of 10 spot Bitcoin ETFs between January 10 and 11, with most trading on official markets a week later, defied these predictions.
While some analysts and investors welcomed the ETF approval as a signal of mainstream adoption and regulation of Bitcoin, skepticism persists. Chris Burniske, a partner at crypto venture capital firm Placeholder, predicted on January 25, 2024, that BTC could drop to at least $30,000, and possibly even to the mid-to-high 20s, before potentially recovering to previous all-time highs.
Continue to think we go lower to consolidate than most people expect due to variables that are too many to explain in detail via tweet (eg, crypto-market specific, macro, adoption, new product development). As for the denial out there… takes time for partiers to sober up, saw…
— Chris Burniske (@cburniske) January 25, 2024
Burniske’s outlook is echoed by several other crypto experts and influencers, raising concerns about the ETF’s impact on the market. Amidst these uncertainties, CryptoSignals will continue to provide crypto signals reflecting the prevailing sentiments in the ever-evolving cryptocurrency landscape.
