Many considered the rise before the Bitcoin ETF a bubble. Sensing that much of the confidence arose from the imminent Bitcoin, the markets have turned into a gamblers weapon of choice as many essentially bet on the approval coming through. However as announced recently the ETF was reject by the US on grounds it would be difficult to regulate the asset and it would be extremely difficult for surveillance agencies to deal with the antonymous nature of Bitcoin itself.
As seen in the graph below just after the announcement a dump ensued with trading volumes increasing exponentially as short term holders rushed to sell of their coins predicting markets to crash, the opportunity would have been a good time to cut short losses. However long term holders are reaping the benefits of renewed faith in Bitcoin as the currency remains stable and in fact growing up to current levels of $1236 at the time of writing.
To conclude while the Bitcoin ETF was a failure Bitcoin prices have recovered nicely retracing most of the ground lost after the initial shockwave. While selling continued to over 600 000 000 over the day after the decision, markets have calmed down returning to pre ETF conditions. Currently the market indicates a weak bullish outlook as slowly prices inch up recovering over 2.3% within the last 48 hours at the time of writing. It would be wise to purchase now considering all weak hands have been disposed off leaving traders less willing to sell off their stores.
It is predicted markets will hover around the $1250 mark for the current week before a jump to $1280 and above may occur confidence continues to increase surrounding Bitcoin markets. The Bitcoin ETF doesn’t signal the end of Bitcoin in any way as continued development and contributions from various countries such as china and Singapore, individual’s efforts are set to legitimise the use of Bitcoin in various situations.