Reasons for the recent decline in the value of Bitcoin and future expectations
Reasons for the recent decline in the value of Bitcoin
In recent developments, the value of Bitcoin has seen a decline of more than 6% over a 24-hour period, worrying investors. Analyst Ash Crypto delves into the factors that contributed to this decline after the approval of the European Training Foundation. Despite the current decline, positive developments point to a possible rise in the future.
Factors analyzed by Ash Crypto
Bitcoin (BTC) has seen a significant decline, reaching $42,000 in the past 24 hours, especially after the introduction of spot trading for bitcoin ETFs in the United States. Anonymous cryptocurrency analyst Ash Crypto has assessed the reasons behind bitcoin's decline. According to Ash Crypto, the lack of speculation that preceded the approval and the absence of new information for investors after the approval led to the decline. This situation disappointed those who expected a significant increase to $55,000, leading to profit-taking.
Ash Crypto also attributed Bitcoin's recent decline to the natural correction after its remarkable rise from $15,400 to $48,000, driven by the FOMO status related to exchange-traded funds. This correction presented the opportunity to "sell the news" to those who enter the market at lower price points.
Switching to Ethereum
On the other hand, the leading smart contract platform, Ethereum (ETH), has seen a 15% increase in the past seven days, changing market expectations. Some investors have shifted their money from Bitcoin to Ethereum, anticipating the upcoming Ethereum Immediate ETF and considering ETH undervalued compared to its capabilities.
Ash Crypto highlighted that despite Bitcoin's recent decline, positive developments cannot be overlooked. The approval of the Bitcoin Immediate ETF, which has accumulated more than $4.5 billion despite low prices, is a milestone for ETFs. Access to Bitcoin on Wall Street is seen as a very positive development that may attract trillions of dollars to the cryptocurrency market over time. In addition, the approval of Bitcoin Immediate ETF is expected to boost investor confidence in the cryptocurrency market.
Inevitable rise in the medium to long term
Despite the reasons for Bitcoin's recent decline, Ash Crypto emphasized positive developments that the market may ignore. The achievement of Bitcoin Immediate ETF for large size and Bitcoin accessibility on Wall Street are very positive developments. According to Ash Crypto, this could result in Bitcoin reaching $100,000 to $200,000 or even higher in the medium to long term.
Q&A Section
Q1: What led to the recent decline in Bitcoin?
A1: The recent decline in bitcoin was caused by the absence of speculative activities before the approval of bitcoin ETFs and the lack of new information after approval, which led to disappointment among investors.
Second question: Why did some investors switch from Bitcoin to Ethereum?
A2: Investors have switched from Bitcoin to Ethereum due to Ethereum's 15% increase in the past seven days, driven by market expectations regarding the upcoming Ethereum Immediate ETF and the marked decline in ETH value compared to its capabilities.
Q3: What are the expected positive developments in the cryptocurrency market despite the recent decline?
A3: Despite the recent decline, positive developments include the large volume achieved by the Bitcoin Immediate ETF and the increased access to Bitcoin on Wall Street, which is expected to attract significant investments in the cryptocurrency market.
Explore the reasons behind the recent decline in the value of Bitcoin and discover positive developments that point to a potential rise. Analyst insights, market shifts, and impact on Ethereum, along with Q&A, provide a comprehensive overview of the cryptocurrency landscape.