Bitcoin Dips Below $45,000 On ETF Approval False Start: 'There May Not Be A Huge Rally,' Warns Trading Firm
Portfolio Pulse from Murtuza Merchant
Bitcoin's price fell below $45,000 after a false start on ETF approval due to a hacked SEC tweet. Analysts from QCP Capital and K33 Research suggest that an actual ETF approval may not significantly impact Bitcoin's price as it might be already priced in. They also note potential changes in market dynamics, such as reduced volatility and influence of crypto whales, and impacts on the futures market. Ethereum's standing in relation to Bitcoin is also discussed.
January 10, 2024 | 3:31 pm
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NEUTRAL IMPACT
Bitcoin's price reacted to a false SEC tweet about ETF approval, spiking to $48,000 before falling back to $45,000. Analysts suggest that an actual ETF approval may not lead to a significant rally as it could be already priced in.
The price of Bitcoin showed a quick reaction to the false news of ETF approval, indicating high sensitivity to regulatory news. However, analysts believe that the market has already priced in the potential approval, suggesting a neutral short-term impact on Bitcoin's price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Ethereum's position relative to Bitcoin may change, as indicated by the ETH-BTC exchange rate's movement after the fake SEC announcement. Elevated options volatility is expected to normalize post-ETF approval.
The article suggests that Ethereum's relationship with Bitcoin could be affected by the ETF news, as seen in the ETH-BTC rate changes. However, the exact nature of this impact is uncertain, leading to a neutral score with moderate relevance and importance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70