According to CoinDesk: The much-anticipated approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S., rather than causing a surge, seems to have triggered a "sell-the-news" slump. In the narrative of counter trading, those who had made contrarian bets saw vindication as Bitcoin's price dipped as low as $41,500 despite recently hitting a two-year high above $49,000 following the debut of the first spot Bitcoin ETFs in the U.S.
This sequence, where asset prices, sentiment, and leverage rise in anticipation of a bullish event, only for prices to drop soon after, is a fairly common phenomenon in capital markets. Analysts at bitBank in Japan have predicted the event will likely act as a short to mid-term price peak.
Nonetheless, these analysts indicated Bitcoin could face profit-taking sales pressures in the short term. Yet, owing to lower U.S. treasury yields and the market's positive outlook regarding the Federal Reserve's early interest rate cuts, these analysts stated that the downside risk could be restricted.
Bitcoin’s support level is currently eyed at the psychological milestone of $40,000 by bitBank, with other analysts forecasting support as low as $38,000. Despite the short-term uncertainty, long-term expectations for Bitcoin remain predominantly bullish, particularly due to institutional interest indicated by ETF trading volumes.
Industry experts, such as Henry Robinson, founder of Decimal Digital Group, see Bitcoin ETFs as transformative for the industry, paving broader access for conventional wealth management. He believes their launch will encourage fresh Bitcoin investment from endowments, pensions, insurance companies, sovereign wealth, retirement plans, trusts, and more.
