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Bitcoin (BTC) has scared investors with a drop of over 6% in the last 24 hours, falling to $42,000. The decline is particularly notable following the launch of spot Bitcoin ETF trading in the US. Experienced anonymous cryptocurrency analyst Ash Crypto provided a general assessment of why Bitcoin fell.
The Reason for Bitcoin’s Decline
Cryptocurrency analyst Ash Crypto, in a recent analysis, delved into the factors that triggered the decline in Bitcoin following the approval of a spot ETF. According to Ash Crypto, the absence of speculation that preceded the approval and leaving nothing new for investors to anticipate post-approval led to the decline. The analyst highlighted that this situation caused disappointment among those expecting a significant rise to $55,000 and led to profit-taking.
Ash Crypto also noted that considering Bitcoin’s impressive rise from $15,400 to $48,000 fueled by spot ETF-related FOMO, a correction was natural and inevitable, offering a “sell the news” opportunity for those entering the market at lower price points.
On the other hand, the largest smart contract platform Ethereum (ETH) saw an increase of up to 15% over the last 7 days, which led to a shift in market expectations. The analyst mentioned that this changed investor behavior, with some moving their funds from Bitcoin to Ethereum (ETH). This move is associated with the anticipation of an upcoming spot Ethereum ETF and the perception that ETH is currently undervalued compared to its potential.
Inevitable Rise in the Medium-Long Term
Despite the recent drop in Bitcoin, Ash Crypto emphasized some positive developments that could be overlooked by the market. The analyst pointed out that the spot Bitcoin ETF generated over $4.5 billion in volume despite the price drop, marking a significant milestone in ETF history. He added that Bitcoin’s accessibility on Wall Street is a very positive development and could attract trillions of dollars to the cryptocurrency market over time. Additionally, the approval of the spot Bitcoin ETF is expected to foster investor confidence across the cryptocurrency market.
Sharing his personal view, the analyst reiterated his expectation for a rise in the medium to long term, believing that spot Bitcoin ETFs will gain popularity on Wall Street and attract significant allocations from companies. According to Ash Crypto, this could potentially lead Bitcoin to reach $100,000 – $200,000 and even higher.
