The long-awaited approval of spot Bitcoin ETFs in the US has been met with a surprising 5% drop in the price of BTC over the past 24 hours.
This counterintuitive Bitcoin price reaction seems to stem from “buy the rumor, sell the news” behavior, as traders who bought in anticipation of an ETF green light are now taking profits.
Bitcoin Price Slides Below Key Support Levels After ETF Launch
Bitcoin’s price has declined from yesterday’s high of $49,000 to $44,970 at the time of writing after spot BTC ETFs went live in the US.
This drop took Bitcoin through several key technical levels that are worth analyzing.
On the 4-hour chart, Bitcoin has pierced the former resistance zone at $46,000, which many investors had hoped would act as support.
More notably, this decline occurred when Bitcoin tested its 0.618 Fibonacci retracement level from November 2021’s high to November 2022’s low.
This retracement zone is an important technical area, and failing to break above it could signal further downside for Bitcoin in the short term.
The confluence of these technical factors suggests profit-taking from early ETF investors, who may have opted to lock in gains after the initial surge.
Additionally, the Crypto Fear & Greed Index moved into the “Extreme Greed” zone earlier in the week.
This move into Extreme Greed could be another bearish indicator since investor euphoria often comes right before a sharp decline as large institutions decide to cash out.
Spot Bitcoin ETFs See Billions in Volume Despite BTC Price Pullback
While Bitcoin’s price has pulled back after the ETF launches, the first day of trading for these long-awaited products has actually seen substantial volume and demand.
Over $4.6 billion worth of shares in the new spot Bitcoin ETFs changed hands on the first day, highlighting the significant investor appetite.
Heavyweight firms like Grayscale, BlackRock, and Fidelity are leading the volume charge.
This suggests institutional adoption is ramping up as the ETFs provide an easier vehicle for professional investors to gain exposure to Bitcoin.
Now, the issuers face an intense battle for market share, with many slashing their fees aggressively to undercut competitors.
Some have fees as low as 0.2%, while others are even waiving them entirely for a period of time.
So, while Bitcoin’s price has been lackluster out of the gate, the ETF story seems far from over.
Which New Altcoins Could Rise Following Spot ETF Approval?
Now that spot BTC ETFs are live in the US, the path could be cleared for smaller altcoins to benefit from the market momentum.
One altcoin that could be positioned to benefit is Bitcoin Minetrix (BTCMTX), which offers a unique spin on Bitcoin mining and staking.
Spot ETFs Shine Light on Bitcoin Minetrix’s Innovative Staking Model as Presale Raises $8.2m
Bitcoin Minetrix debuts a unique Stake-to-Mine architecture that allows users to participate in Bitcoin cloud mining simply by staking their BTCMTX tokens.
This low barrier to entry makes Bitcoin mining accessible to almost anyone.
Bitcoin Minetrix operates on the Ethereum blockchain, leveraging the network’s extensive security infrastructure.
Coinsult has even audited the project’s smart contracts – further enhancing Bitcoin Minetrix’s legitimacy.
Investors have been piling into Bitcoin Minetrix’s presale due to its value-driven features, helping raise more than $8.2 million in funding.
The launch of spot BTC ETFs has also boosted the profile of Bitcoin Minetrix, which is indirectly tied to Bitcoin’s adoption.
As the upcoming Bitcoin halving draws nearer, many analysts expect the value of BTC to rise as block rewards are cut in half.
If BTC’s value rises, this could make Bitcoin Minetrix’s mining features more appealing since users could earn more BTC rewards for the same amount of staked BTCMTX.
This increased profitability could even attract more users to the platform – creating a positive feedback loop and potentially propelling BTCMTX’s price alongside Bitcoin’s.
For this reason, Bitcoin Minetrix presents an intriguing new approach to Bitcoin mining with potentially lucrative benefits.
Visit Bitcoin Minetrix Presale
