"Everyone is waiting for the approval of the spot BTC ETF, but the price does not go up and down anymore."
After hovering below $43,000 for two days, the price of the cryptocurrency king Bitcoin (BTC) yesterday unfortunately made a quick dive to $41,561 as the spot approval of the BTC ETF produced no upside.
As such, traders may decide to take profits and that action has caused the price of BTC to see a drastic pullback at the mentioned level.
Some analysts expect the price of BTC to crash to $25,000 or even lower, but $38,000 may attract long-term investors who are watching the BTC halving event and institutional inflows into spot BTC ETFs.
According to Bloomberg ETF analyst Eric Balchunas, the newly launched ETF saw inflows of $1.4 billion while Grayscale Bitcoin Trust (GBTC) outflows were $579 million, but net inflows in two trading sessions across ETFs were $819 million.
So here it can be seen that BTC's failure to sustain its price above $48,000 has prompted short-term traders to book profits after the digital asset's drastic fall on January 12, 2024.
If BTC breaks below $42,000, selling could increase and this means the price could plunge to $41,500 then $40,000 but if not then the digital asset could rise again at $44,700.
As of this writing, BTC price has plunged by 1.43% at $42,174 in the past 24 hours with a market cap of $826 billion and has recorded a 3.73% decline over the past week.
