Bitcoin value dips as traders speculate on potential US ETF impact
Bitcoin’s value fell by 2.4% in the last 24 hours, trading at US$42,400 (1.4 million baht) on yesterday in Singapore. This comes as traders speculate on how the potential approval of the first US exchange-traded funds (ETFs) investing directly in the digital asset could impact crypto markets. Despite the recent dip, Bitcoin has seen a significant rise of 156% this year, partly due to bets that the ETFs will generate new demand.
The US Securities & Exchange Commission is expected to authorise spot Bitcoin ETFs before January 10, according to Nic Carter, founding partner at Castle Island Management LLC. While Carter sees the funds broadening the spectrum of crypto investors in the medium term, he also suggested a possible immediate “news selling event”.
Yet, there is uncertainty over whether the formal approval of these products may result in some investors cashing in their profits. This is based on the investors’ strategy to “buy the rumour and sell the news.” The prospective interest in the spot Bitcoin ETFs proposed by major firms such as BlackRock Inc and Fidelity Investments is still ambiguous, reports Bangkok Post.
In the past day, smaller tokens like Avalanche and Solana have experienced more significant losses than Bitcoin. Meanwhile, meme-crowd favourites like Dogwifhat also witnessed a decline. Contrarily, BNB, the coin of the Binance exchange, resisted the selloff with a rise of 10%.
The increase in Bitcoin’s value this year has also been propelled by anticipations of lower interest rates in the US. This surge has partially offset the impact of the sharp 2022 crash that sent shockwaves through the crypto industry. Despite this, Bitcoin’s value still lags behind its record high of nearly US$69,000 (2.3 million baht) set during the pandemic period.
In related news, Asia’s crypto craze: Bitcoin’s impressive ascent fuels ETF hopes.
