Steemit Crypto Academy Contest / S15W3 - Bitcoin ETF! What impacts? .

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It's all started earlier this January, 2024 when the Bitcoin ETF was a trend on Twitter. A first got to know about this bitcoin ETF earlier this year because of the influx of trends. The Bitcoin ETF was expected to be approved by the US security exchange commission on the 10th of January. All hopes were high that if the US security exchange commission approve the Bitcoin ETF, there will be an increase demand for bitcoin and its price will increase as well.

On the night before its approval by the US security exchange commission SEC, their Twitter account was hacked and a proposed approval was made on bitcoin ETF before they are agreed date. Fortunately, this made Bitcoin rise from $44k to $49k. The rate at which it increased was surprising not until the US security exchange commission found out and made a public declaration that their account was hacked. Even with such events the US security exchange commission approved bitcoin Etf the night of the 10th.

A lot of investors were actually excited, little did they know it's going to be a reverse of what they expected. What's this bitcoin Etf? What Impact does it have in the crypto ecosystem generally?

It is not news that this was and is still the major trend today in the crypto ecosystem. The Bitcoin ETF known as Bitcoin exchange traded fund is a product or asset that allows investors and access to bitcoin price movement without directly owning the Bitcoin itself. It is more like a traditional stock traded on some exchanges instead of representing ownership of a company.

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It tracks the price of Bitcoin. When you own bitcoin directly, you have full position of the actual cryptocurrency in a digital wallet. This position involves owning a private and public key which helps enhance security challenges and protection of the assets. So in essence, the Bitcoin ETF simplifies and create a more comfortable room for investors to not just buy shares in the stock market but also access it.

It acts as a convenient to for investors who are used to traditional financial instruments involving shares. This ETF provides a level of liquidity and fosters its faster when it comes to executing transactions with the actual bitcoins. So in a nutshell, the value of bitcoin ETF is track the price of Bitcoin without having full control or owning it. Bitcoin etfs has to be approved by financial and governmental authorities.

A lot of investors predicted that if bitcoin ETF is to be approved by the US security exchange commission SEC, the price of Bitcoin will go up and if it were rejected, it will reduce to $38k. That's what just happened but why?

The approval of Bitcoin ETF by governmental organizations gained it more grounds and acceptability in the open world and a lot of users with see the need for adding such coin to their portfolio, dead by reducing selling pressure and then increasing demand for bitcoin and other crypto assets.

I can recall when the Twitter account of this financial body was hacked a Night to bitcoin ETF approval. The price of Bitcoin kicked up from $44,000 to $49,000. Such an increase as expected not until the letter happened but why? The reason is because there where number of investors who actually entered the market anticipating that they approval would give them so much profit during the first trade.

Those who entered her to sell their bitcoin Holdings after their profile to lock him profit and with such selling pressure there will be a decrease in demand which out strips supply. This sell pressure brought about the decline in the price of Bitcoin from $49k to $40k.

The approval of Bitcoin ETF as I earlier said was expected to increase the price of Bitcoin which would make it goes scarcer and the trained on which it goes bullish will attract investors. The Bitcoin ETF ensures investment in this asset is regulated and serve compared to dealing directly with cryptocurrencies which requires pass keys, private and public key.

The Bitcoin ETFoffers investors a good level of security which is lacking in direct crypto exchanges as this ETFs are stored and traded in the stock market just as someone buys a share in a company or bank. Funds are guaranteed from fraudulent activities that may likely comes up. It has brought about mainstream adoption in The crypto ecosystem of some coins.

Contributions were followed which made many become interested in the asset and it brought about recognition of Bitcoin as a legitimate asset. Those who were skeptical about bitcoin now considers the ETF to be part of the investment because of their acceptance of the ETF by regulatory bodies. Risks were mitigated making its possible for investors not to be exposed to the risks that involves their assets.

It allows them see bitcoin as a legitimate investment or assets. It also allows investors delegate their assets or Security account against hack and the likes of them. These are reasons why the Bitcoin ETF is a major trend and points for consideration.The followed approval of Bitcoin ETF facts about an increase in demand or buying activities by investors and Traders with the hope that they'll gain profit when the Bitcoin ETF is finally approved by the US security exchange commission.

So since such an unexpected decline made investments psychologically so they are Holdings won't be affected in anywhere. Due to this, most investors and Traders went into sell pressure which resulted in change in market sentiment. Another factor to be considered is that this decline is uncertainties in the implementation and operation of the Bitcoin ETF and some investors or Traders actually feared the regulatory development which may negatively impact the market.

Those investors and Traders who rely basically on technical analysis that identify key support and resistance levels will actually know when the price of Bitcoin reaches particular resistance level which may lead to a cell signal and a decline in the price of Bitcoin. Reasons why some Traders choose to engage in short-term threats as the market is not moving for bitcoin as expected. Last 2 weeks, the market was just dormant moving up, moving down and maintaining a particular price range for weeks.

The introduction of a Sec-approved bitcoin Etf and the decentralized governance of the Steam blockchain I actually do distinct digital assets which have unique characteristics and implications for investors. I'll be relating this to with subheadings.

Sec-approved bitcoin Etf

• the sec-approved bitcoin ETF makes Bitcoin to be very much accessible but scarce as well. It makes it accessible and attractive to investors, institutionally and retail who would want to add this coin to their portfolio as the grounds bitcoin has from this Approval makes it a legitimate asset to hold for future use.

Steem Blockchain

• users who holds team tokens have a say in the network's governance compared to bitcoin Etf. This allows for a more explicit decision making and bring about development as well by the communities.

Bitcoin ETF

• the Bitcoin ETF have a custodian responsible for securing and holding the actual BTC which acts a layer of trust for investors who may be wearing with dealing with private case as most exchanges does. So most investors want to avoid that channel that's why they consider the bitcoin Etf as important.

Steem blockchain

• steam blockchain actually operates on a decentralized model of governance where decisions are collectively made by the communities through mechanisms like voting compared to the Bitcoin ETF. This decentralization aims to distribute power and decision-making across participants of the network which reduces the reliance on a central authority.

That's the reason it's centralized which makes the blockchain more safe and control doesn't belong to the hands of a particular user who may just wake up one day and wrap up the platform.

Based on Complementary and divergent perspectives

• Those who engages with the Steem blockchain value decentralization and make them accept their associated risks for greater control while those investing in Bitcoin ETF my place priority on regulatory compliance which emphasizes mitigation of risks

• some investors may actually see the good in this two options as using bitcoin ETF exposes us to bitcoin price movement while engaging in decentralized platform like the Steem blockchain enhances broader blockchain ecosystem participation. So as the Bitcoin ETF enhances or increase the accessibility of bitcoin and attract investors as well, there will be an increase in demand in months to come which will definitely increase the price of Bitcoin and steem as well.

So in summary, the Bitcoin ETF that was approved on the 10th of January, 2024 plays an important role in The crypto ecosystem. The accessibility to the price of Bitcoin without directly owning is one of its main importance. Even though the price of bitcoin is currently depreciating, the reasons are clear. I invite @whizzbro4eva, @nsijoro and @emmy01

All screenshots are from my binance exchange and twitter account

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have