Bitcoin’s Price Analysis: SEC ETF Approval Impact | Coin Informer

January 22, 2024. Bitcoin prices reached their lowest level since the SEC approved Spot Bitcoin ETFs in early January, trading below $40,000. On January 22, the largest cryptocurrency’s price dropped to $39,526, marking the lowest level since early December. As of January 24, 2024, Bitcoin’s price remains in this range, raising concerns within the crypto community. 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. Bitcoin's price surged to an impressive peak of $48,969 following the approval, driven by high anticipation from the digital community.

Unexpected Price Drop

Market analysts had anticipated a 10% drop in Bitcoin prices, but the recent decline was unexpected. The downward trend began on January 22, when Bitcoin prices fell to $39,526. On January 23, prices showed minimal growth, standing at $39,864, but as of January 24, 2024, Bitcoin is trading at $39,835.55.

Market Concerns

The decline in Bitcoin’s price is likely to impact the entire crypto industry, leading to concerns among enthusiasts. Analysts attribute the price drop to strong competition with traditional stocks, which reached record highs on the same day Bitcoin fell. Additionally, Bitcoin faces significant competition from Grayscale Investment’s Bitcoin trust, recently converted into an ETF under the SEC’s decision.

Future Predictions: Will Bitcoin Breach $35K?

The future of Bitcoin’s price is a hot topic in the crypto market. Questions arise about whether Bitcoin will rebound or continue to decline.

Theory #1: Potential Drop Below $38K

If Bitcoin’s price falls below $38,000, there is a significant probability it may reach the $35,000 mark. The 200-day Exponential Moving Average (EMA) suggests a high chance of this scenario, which could be detrimental for Bitcoin in the short term.

Theory #2: Stability Around $40K

Conversely, if Bitcoin shows stability by trading near $40,000, a significant price rise could be expected.

Investment Opportunities for Beginners

Investing in cryptocurrency when prices are low is a common strategy. Many analysts encourage investing in Bitcoin now, viewing it as a favorable opportunity. However, caution is advised for beginner investors, as attempting to buy at the absolute lowest point can lead to unnecessary risks.

As your ultimate guide on cryptocurrencies, Coin Informer suggests investing in Bitcoin if you have sufficient capital, but advises complete beginners to wait for a more favorable time.

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