January 22, 2024. Bitcoin prices reached their lowest level since the SEC approved Spot Bitcoin ETFs in the early days of January. With over a 4% drop in the last 24 hours, Bitcoin was trading below $40,000. On January 22, the largest cryptocurrency’s price dropped to $39,526 (the lowest since early December). As of January 24, 2024, Bitcoin’s price is trading in the same price range. This has led to the crypto community’s concerns over this sudden downfall. Let’s analyze this trend in detail.
A Sudden Downfall of Bitcoin’s Price:
On January 11, 2024, the SEC approved the functioning of spot Bitcoin ETFs across the United States. The price of Bitcoin was reaching new heights, even before the SEC’s decision, as the whole digital community was highly anticipating the decision. When the decision was made to favor spot Bitcoin ETF approval, Bitcoin’s price surged with an impressive peak of US$48,969.
According to market analysts, a 10% drop in Bitcoin prices was expected.
But the fall in Bitcoin’s Price shown in the past few days was unexpected. The trend of the downfall started on January 22, when Bitcoin prices suddenly fell to $39,526. On the Next day (January 23, 2024), prices witnessed minimal growth, standing at $39,864. With a -0.35% fall, the bitcoin price is trading at $39,835.55 (As of January 24, 2023).
Bitcoin’s Price Downfall Sparks Concern in the Market:
The fall in the price of the largest cryptocurrency will surely impact the whole crypto industry. That’s why many crypto enthusiasts are showing concerns over this trend.
Many analysts said the fall in Bitcoin’s price is due to its strong competition with traditional stocks. On the same day, when Bitcoin prices fell, traditional stocks witnessed fresh record highs in their prices. Moreover, bitcoin is facing significant competition from Grayscale Investment’s Bitcoin trust (which was recently converted into an ETF under the SEC’s decision).
Future Prediction on Bitcoin’s Price: Will it Breach Towards $35k?
The questions on Bitcoin’s price have taken center stage in the crypto market. And why not? It sure has to do since Bitcoin is the largest cryptocurrency. Coming back to the topic,
What’s next for Bitcoin prices, or will it make a massive comeback in the next few weeks?
The answer to these questions lies in some theories.
Theory #1:
If the Bitcoin’s Price falls below the US $38,000 level, there is a huge probability that the cryptocurrency may touch the $35,000K mark. If the 200-day Exponential Moving Average (EMA) suggests a high chance of Bitcoin falling to the $35,000K mark, it could be really bad for Bitcoin in the short term.
The 200-day Exponential Moving Average (EMA) is a specific type of moving average that traders and analysts use to assess short-term price fluctuations and identify the general direction in which an asset’s value is moving over an extended period of 200 days.
Theory #2:
We can expect a significant price rise if Bitcoin’s Price shows stability by trading near $40,000K.
Bitcoin Trading at Low Prices = An Investment Opportunity for Beginners?
It is one of the year-old strategies of cryptocurrency, which implies,
Invest in a Cryptocurrency when it is Trading at Low Prices.
The time has changed, but the value of this strategy remains static. As a result, many analysts are encouraging their followers to invest in Bitcoin as it is the right time. But there are many other analysts, too, who are insisting beginner investors exercise caution and not become overly focused on trying to buy an asset at its absolute lowest point. In the crypto landscape, prices can be unpredictable, and buying the tokens at the lowest price might lead investors to take unnecessary risks.
As your ultimate guide on cryptocurrencies, Coin Informer suggests you invest in Bitcoin now if you have enough capital. If you’re a complete beginner, this isn’t the right time.
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