ETF Approved, Why Bitcoin Still Down?
11th Jan 2024 was a historical date where the first ETFs were traded in the New York Stock Exchange. Two weeks have passed and the ETFs have amassed more than 100k BTC. That's such a bullish sign! Or is it?
What happened few days after the ETF trading were weakness and selling. Bitcoin fell by more than 10% since reaching a short term all-time high of $48.5k and stabilized a few days above the $42k mark before facing more headwinds down around $40k.
During this period, many of the BTC Spot ETF issuers were buying up their own ETFs. While this is seen like a strong move but it is kind of supporting their own product by purchasing internally, showing good numbers.
That was followed by investors who have sold more than $2 billion worth of the Grayscale Bitcoin Trust (GBTC) since it was converted into an exchange-traded fund earlier this month. A large chunk of that exodus was FTX's bankruptcy estate dumping 22 million shares.
Now that prices have maintained around the $40k range and our technicaly analysis trainer, Loi Jun Kai mentioned in one of our community meet ups in December 2023 that BTC prices would revisit $38k mark.
Personally I felt that it was very bubbly with the ETF hype and I too believed a minor dip in prices would come soon. It was expected and we shared with our community often as well.
If you have bought at the $48.5k top and this drop to $40k spooked you, you are definitely not ready to be investing in the crypto markets. You do not have the resilience and strategy to understand the crypto markets.
If you don't want to just survive but flourish in the crypto markets, you will need proper training and guidance so as to ride the crypto market bull cycle upwards. Now the choice is up to you, you decide how you will come out when the bull cycle ends in the near future.
