Tuesday, February 27, 2024

Bitcoin price reaction to likely Spot ETF approval could discourage BTC holders.

A decision on Bitcoin Spot ETFs by the US financial regulator could potentially be announced as early as Tuesday of this week, according to a recent report by Reuters. James Seyffart, an ETF analyst for Bloomberg, offered some insight into what to anticipate should the Securities and Exchange Commission (SEC) approve.

Although the SEC may soon approve the Bitcoin Spot ETF, it may not perform well in the near run

The US SEC’s probable approval of the Bitcoin Spot ETF may let down investors who are concentrating on the event’s immediate effects. According to VanEck, Director of Digital Assets Strategy, people tend to overstate the impact of spot Bitcoin ETFs in the beginning. Gabor Gurbacs anticipates the Spot Bitcoin ETF debut will have a major long-term impact in addition to a few hundred million dollars in inflows into the securities instrument.

In a recent tweet, James Seyffart expressed agreement with Gurbacs’ assessment of the immediate effects of the approval of a Spot Bitcoin ETF.

Price of Bitcoin remains above $42,000 in 2024

Right now, the price of bitcoin on Binance is $42,376. Despite bearish warnings in on-chain indicators such as the Network Realized Profit/Loss and increased BTC supply on exchanges, as observed on Santiment, the largest cryptocurrency by market capitalization managed to maintain over $42,000 in 2024.

The Network Realized Profit/Loss chart shows significant increases that correspond to BTC traders taking profits between October and December 31.

The graphic below shows the increase in the supply of bitcoin on exchanges between December 27 and December 31. Rising BTC reserves in exchange wallets frequently cause increased selling pressure on the asset. On January 1, despite increasing pressure from sellers, Bitcoin remained above $42,000.

Owners of Bitcoin saw monthly gains of almost 10% as the deadline of January 10th for the approval of the Spot BTC ETF drew near.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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