Bitcoin Price Falls Amid ETF Rejection Speculation: How Low Will It Go?
The Bitcoin (BTC) price is experiencing a significant drop amid mounting speculation that the SEC might reject Spot BTC ETF applications. This follows a period of initial optimism surrounding their launch, but recent events have triggered a wave of uncertainty in the market.
A Stunning Turn of Events: In a rather stunning turn of events for the asset, the Bitcoin (BTC) price has fallen amid speculation of a potential ETF rejection. The asset fell as much as 10% over the last period, sparking concern among investors.
Why is Bitcoin Dropping?
On Wednesday morning, the price of Bitcoin (BTC) dropped by 7%, reaching a low of $41,804.95, following rumors that the SEC might turn down Spot BTC ETF. This has fueled fears of a potential market correction, reversing the gains made in anticipation of ETF approval.
Matrixport Prediction: 20% Price Drop?
The uncertainty has led to various predictions, with some analysts suggesting a more significant downturn. Bitcoin ETF may get rejected and trigger 20% price drop, Matrixport predicts. This adds further pressure to the already volatile cryptocurrency market.
Grayscale Fund Outflows Add to the Pressure
Compounding the issue is the outflow of funds from Grayscale’s GBTC fund. Bitcoin traded at $46,100 on the day the ETFs were launched, but has fallen steadily since. At the same time, $3.4 billion has left Grayscale’s fund, the world’s largest Bitcoin fund, potentially exacerbating the price decline.
Bitcoin Price Declines Amid Speculation of ETF Denial: The Numbers
Bitcoin $42,260 -0.64% (BTC) has experienced a significant drop in price, with a sharp 10% decline in the last period. A sudden 10% slump in Bitcoin prices sparked predictable panic in some corners of the crypto community.
What's Next for Bitcoin?
The future of Bitcoin's price hinges largely on the SEC's decision regarding the Spot BTC ETFs. A rejection could lead to further price drops, while approval could reignite bullish sentiment. Investors are advised to exercise caution and stay informed about market developments.