Bitcoin has lost more than 5% of its value in the last 7 days and has experienced a drop of about 16% since the peak of $48,500 in January this year. The price is now worryingly close to the psychological support of $40,000, and speculations about a coinuation of the dowrend and a market correction are at their peak. But what are the reasons behind the rece fall of Bitcoin and how long will this trend coinue?
Publishing the news of approval of cash ETFs in the worst way
According to CryptoPotito, after years of effort, rigor and waiting, the requests to launch Bitcoin Cash ETFs have finally been approved by the US Exchange Commission; But this was not without problems, and in fact, the way this news was announced reduced its impact on the market.
A few days before the official announceme of the approval of cash ETFs, the X (former Twitter) accou of the US Exchange Commission was hacked and fake news of the approval of requests by this organization was published in it. This action created a two-way price spiral and subsequely led to the liquidation of millions of dollars of trading positions in leveraged markets.
Further, after publishing the official announceme regarding cash ETFs, the US Securities and Exchange Commission removed it from its website for a while. The reason for the temporary removal of this announceme was its publication during the trading hours of the United States stock exchange. According to the plans of this organization, the notification in this regard was supposed to be done after the end of trading hours.
Despite all these obstacles and problems, the price of Bitcoin experienced a rapid increase the day after the announceme and reached a peak of $48,500.
The launch of Bitcoin Cash ETFs in the US is a prime example of an eve where traders buy on a rumor and sell on a major news release. At the same time, it seems that the inflows io these funds have not been able to offset the selling pressure in the market and Bitcoin is following its downward trend and approaching the key level of $40,000.
Market overshooting
The digital currency market has generally seen a long uptrend over the past mohs, without significa price correction. The main reason for this growth was again the expectation of traders for the approval of Bitcoin cash ETFs in the US.
As can be seen from the chart above, the price of Bitcoin moved from the level of $26,000 in mid-October and reached $48,500 this moh without a single serious correction. This moveme shows the 86% growth of the price in this period of time.
The popular fear and greed index of digital currencies also showed the excessive peaking of the market for a long time, i.e. the state of greed or extreme greed, and it has recely eered the neutral zone.
When will the uptrend return?
Sellers have had the upper hand in the market for the past few weeks, and that's why some investors expect Bitcoin buyers to regain strength.
Predicting Bitcoin price developmes for the future is a difficult task. However, the halving eve is an importa issue to be aware of.
This April, the reward for extracting each block from the Bitcoin network will be halved, and as a result, the speed of supplying new units will decrease, which in itself is considered a bullish factor.
Bitcoin halving in the past has always been accompanied by long-term price increases, and most analysts agree that this will happen again in the curre cycle.
Also read: Bitcoin price prediction after halving
