“There’s a hangover mood”: Bitcoin price falls amid disappointment following fund approvals

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As of Friday morning, the oldest and best-known digital system cost around $41,400. “There is a hangover in the market after the first approval of the Bitcoin spot ETF in the US,” commented crypto expert Timo Emden of Emden Research. It is clear that investors are undergoing a fact check from a serious perspective. Recent price development suggests that ETF approval should not be viewed as a “free pass for further price gains.”

Last week, the U.S. Securities and Exchange Commission (SEC) approved eleven so-called spot ETFs for Bitcoin, including funds from major asset managers such as Blackrock and Fidelity. There was great rejoicing among Bitcoin fans; The approval was hailed as a turning point for the industry. Thanks to exchange-traded ETFs, US investors will be able to invest directly in Bitcoin for the first time without having to purchase the digital currency.

Experts hope that the innovation will give Bitcoin a better reputation and that other digital assets such as Ether can also benefit from it. There is also hope that the new ETFs will attract fresh money and boost crypto prices. Despite last year’s strong price gains, Bitcoin is still a long way from its record high in 2021. At that time it rose to almost $69,000.

US bank JPMorgan is more cautious: its experts expect changes in the crypto sector rather than an influx of new money. The latter depends less on new forms of investment and more on the scope that regulatory authorities have given for Bitcoin and other cryptocurrencies to be included in the financial system. (SDA)

Source :Blick