In a landmark event, Bitcoin Exchange-Traded Funds (ETFs) have finally made their debut on U.S. exchanges. This development, arriving after years of anticipation and numerous attempts, was expected to be a significant moment for the cryptocurrency. However, the reality proved to be underwhelming for Bitcoin’s market value.
According to sources from Binance News, following the launch of these spot ETFs, Bitcoin’s price experienced minimal impact. The cryptocurrency briefly neared the $49,000 mark but then saw a reduction of about $3,000, marking a 6% decrease. This retracement brought Bitcoin’s value slightly below its pre-announcement level, despite the initial buzz created by an unauthorized announcement from the SEC’s social media hacker.
The history of Bitcoin’s fluctuating prices tells an interesting story. Prior to the official launch of the ETFs, Bitcoin had shown significant upward movement, especially during and after BlackRock’s spot ETF filing last June. The cryptocurrency reclaimed its value lost during the Terra implosion and surged further following a false tweet about SEC’s approval of BlackRock’s bid. However, this growth was short-lived, and Bitcoin’s value fluctuated in the subsequent months.
Now, as Bitcoin ETFs have been officially introduced, the market’s reaction has been surprisingly muted. Analysts suggest this could be due to the market having already priced in the news, as evident from the cryptocurrency’s previous rallies on rumors and speculative trading. In comparison, Ether, another major cryptocurrency, is showing promising potential, with some traders expecting it to surpass Bitcoin in terms of six-month returns.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.