At the time this article was prepared, BTC was trading at the lowest price of the last 24 hours, which was $41,735. But why? There are several reasons for the ongoing decline, and they are connected to the ETF approval expected in January. Let’s take a look at the reasons for the recent drop.
Why Is Bitcoin Falling?
While optimism for the spot Bitcoin ETF approval had been increasing for days, some experts were persistently stating that the official approval announcement would trigger a “sell the news” event. This led some investors to secure their already profitable wallets. We are seeing heavy profit-taking in BTC and altcoins. The eagerly awaited event seems to be the second and actual surge after the ETF approval. For now, the ETF FOMO may have reached its peak.
However, what investors need to pay attention to here is that this is not a normal event. In other words, the “sell the news” story may not work this time. For this, we will need to see strong volumes of over 1 billion dollars in ETFs in the first week after the approvals.
On the other hand, ongoing BTC sales by miners are also making it difficult for buyers. Miners, who are making significant earnings from transaction fees due to Ordinals and are satisfied with the BTC price level, are striving to reduce the possibility of regret in the event of a potential decline.
Tomorrow and Sunday, being the weekend and coinciding with the end of the year, we may see fewer investors trading on exchanges. This could mean weaker volumes and (possibly) ongoing profit-taking creating a more negative atmosphere.
