Bitcoin experienced a significant drop of over 6% in the last 24 hours, falling to $42,000, which alarmed investors. The decline coincided with the launch of spot Bitcoin ETF trading in the U.S., prompting analysis from seasoned crypto analyst Ash Crypto.
Ash Crypto examined the factors behind Bitcoin’s fall post-spot ETF approval, suggesting the absence of pre-approval speculation and a lack of new incentives for investors post-approval led to the downturn. This resulted in disappointment among those expecting a surge to $55,000 and prompted profit-taking.
The analyst also mentioned that a correction was natural and inevitable considering Bitcoin’s impressive rise from $15,400 to $48,000, driven by spot ETF-related FOMO. This presented a “sell the news” opportunity for those entering the market at lower price points.
Meanwhile, Ethereum’s (ETH) 15% rise over the past week shifted market expectations, with some investors reallocating funds from Bitcoin to Ethereum in anticipation of a potential spot Ethereum ETF and the belief that ETH is currently undervalued.
Despite the recent drop, Ash Crypto highlighted positive developments, such as the historic $4.5 billion volume generated by the spot Bitcoin ETF, marking a milestone in ETF history. The analyst also predicted a medium to long-term rise, expecting Bitcoin to potentially reach $100,000 to $200,000 or more due to increased Wall Street accessibility and investor confidence in the crypto market.