Many investors hope that when the SEC approves Bitcoin ETFs, Bitcoin prices will rise higher.
Indeed, the price of Bitcoin rose to close to the 49k level after the official SEC report approved the application for Bitcoin ETFs.
As written on the FXOpen blog, there are 11 Bitcoin ETFS starting operations, as follows
- Blackrock's iShares Bitcoin Trust (IBIT)
- ARK 21Shares Bitcoin ETF (ARKB)
- WisdomTree Bitcoin Fund (BTCW)
- nvesco Galaxy Bitcoin ETF (BTCO)
- Bitwise Bitcoin ETF (BITB)
- VanEck Bitcoin Trust (HODL)
- Franklin Bitcoin ETF (EZBC)
- Fidelity Wise Origin Bitcoin Trust (FBTC)
- Valkyrie Bitcoin Fund (BRRR)
- Grayscale Bitcoin Trust (GBTC)
- Hashdex Bitcoin ETF (DEFI)
After the official report, the price of Bitcoin rose to 49K, but a few hours later the price fell again to the level of 45k.
Why did Bitcoin fall when the SEC officially approved 11 applications for Bitcoin ETFs? According to analysts, this was mostly due to profit-taking.
When rumors of the SEC approving BIitcoin ETFs, investors enthusiastically bought Bitcoin and caused the price to rise. However, a few hours later, profit-taking brought Bitcoin back down to where it started.
BTCUSD chart on Ticktrader FXOpen
As we can see from the chart above, last January 11 the price soared to a high of 48877.828. However, prices failed to continue their rise even higher. Bitcoin fell to at low of 45627.201. This makes BTCUSD form a bearish candle with a long tail at the top of the candle.
Now in the H1 timeframe, BTCUSD is moving flat near the middle band line.