For several months, the rumor persisted that the US Securities and Exchange Commission (SEC) could allow a Bitcoin spot ETF for the first time in the USA.

This was expected to bring a renewed influx of billions of dollars. In other words, investors were hoping for big money.

Recently, it finally happened. On January 12, 2024, the SEC actually approved the first 12 Bitcoin ETFs. But what has happened to Bitcoin since then?

Bitcoin falls – US approval for funds has no effect Instead of rising now, it has fallen! On the day of the approval announcement, nearly $49,000 was paid for one Bitcoin, but recently it was only around $40,000 – a drop of over twenty percent in just a few days. What’s going on? And what’s next?

Bitcoin falls since ETF approval

Source: aktienscreener.com

You should know the following about this. Prices rose in anticipation of this event (ETF approval) beforehand. So when the approval actually came, the event was already priced in. It is therefore completely normal for there to be profit-taking and temporary price declines afterwards.

Some analysts even say that the ETF approval is currently putting short-term pressure on prices. This is because there is currently a shift from Bitcoin to ETFs, which is pushing down prices for Bitcoin. However, this theory cannot be precisely verified.

Bitcoin falls? These events are likely to turn the tide! But what seems more important to me is looking ahead. And there I see the following two developments.

On the one hand, the potential for further interest rate hikes for the US dollar seems to have been exhausted, according to the latest statements from the US central bank. So it is unlikely that interest rates for the dollar will rise any further.

This means that the potential for further appreciation of the US dollar is certainly limited. In return, alternative „hard“ currencies such as Bitcoin (and gold) often rise.

But what seems even more important to me is the upcoming fourth so-called Bitcoin halving, which is expected to take place in mid/late April. The Bitcoin halving is one of the most important events in the crypto world.

Tomorrow, I will explain what this means for you as a (future?) Bitcoin investor in my post.