Wed. May 22nd, 2024
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  • Bitcoin experienced a significant sell-off following the launch of the first spot Bitcoin Spot ETFs in the US.
  • Analysts believe the newly launched ETFs are positive long-term price catalysts for Bitcoin.
  • However, before Bitcoin reaches new highs, it may see further pullbacks.
  • Investors and miners are reaping huge unrealized gains as the ETF trend pushes BTC up more than 60% in the past three months.
  • Experts suggest potential support levels for Bitcoin at $43,000 and $45,000.
  • Despite the potential for a pullback, experts believe Bitcoin’s overall uptrend is still intact and could push BTC to a new record this year.

Bitcoin Suffers Sell-Off After Spot ETFs Launch

Bitcoin experienced a significant sell-off following the launch of the first spot Bitcoin Spot ETFs in the US. The sell-off erased all gains from a profitable week, but analysts remain optimistic about Bitcoin’s long-term prospects.

The newly launched ETFs are seen as positive long-term price catalysts for Bitcoin. As familiar and regulated investment vehicles, they are expected to attract new capital into Bitcoin and increase demand while supply remains constant, as mandated in the BTC code.

Many investors and analysts have expressed their belief that Bitcoin could reach or even exceed its all-time high of $69,000. However, before this happens, Bitcoin may see further pullbacks, according to analysts.

One analyst noted Thursday’s rejection of $48,000, which marks the March 2022 top, as significant. He suggested that a “buy the news” scenario may be developing with the launch of Bitcoin ETFs.

On Friday, Bitcoin fell more than 5% to $43,858.23, according to Coin Metrics. Analysts pegged the current support level at $43,000 and suggested $40,000, a level Bitcoin has not seen since early December, would be another potential stopping point.

Despite the potential for a pullback, both analysts said Bitcoin’s overall uptrend is still intact and could push BTC to a new record this year.

Conclusion

The recent sell-off in Bitcoin following the launch of spot ETFs is not unexpected. However, analysts remain bullish on Bitcoin’s long-term prospects and believe that the ETF launch is a positive development for the cryptocurrency.

Bitcoin may experience further pullbacks before reaching new highs, but its overall uptrend is still intact. Investors who are looking to add Bitcoin to their portfolios should consider doing so at current prices.

By Prim

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