As Interest In BTC Spot ETFs Wanes, Bitcoin Is Anticipated To Fall Below $40K: Keep abreast!

Major cryptocurrencies ended the week on the lower side as interest in Bitcoin spot exchange-traded funds (ETFs) continued to wane.

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The overall market value of cryptocurrencies “seems ready for another push towards $2.1 trillion,” according to cryptocurrency expert Michael Van de Poppe, who made this statement in an X post. He did point out that other than Bitcoin, other tokens will be used to do it.

“There will probably be a consolidation phase before the next surge,” the seasoned cryptocurrency expert continued.

The market value of all cryptocurrencies combined is at $1.69 trillion, down 1.8% over the last day. In the meanwhile, the cryptocurrency market saw $37.89 billion in 24-hour activity on Sunday, with Bitcoin (BTC) continuing to lead with a 47.5% market share, followed by Ether (ETH) at 17.2%.

Bitcoin (BTC) may fall to the $38,000 area before the impending halving event in April, which would see the subsidy received for mining a block on the Bitcoin network slashed in half, according to pseudonymous cryptocurrency expert Crypto Tony.

Sentiment, an on-chain analytics company, said that Bitcoin saw a sharp 3% increase over the previous three hours, which led to the top cryptocurrency momentarily reclaiming the $42,000 level at a time when traders were beginning to lose hope in the market. The upward trend coincided with Bitcoin’s impending plunge below $40,000, as anticipated by Crypto Tony.

ETFs Are Unable To Drive The Price Of Bitcoin To All-Time Highs

Analysts are finding it difficult to identify a clear trend in BTC prices as a result of the recent introduction of Bitcoin spot ETFs, which has put the cryptocurrency market in an unclear state. Even though there was no notable decline in the top cryptocurrency over the weekend, traders expecting fresh record highs were left with little cause for confidence.

Even though the price of Bitcoin steadied at $41,000, there was no clear trend, so many market players were unsure of where it would go.

Renowned cryptocurrency trader Rekt Capital issued a warning, stating that Bitcoin had hit a new resistance level and had now plummeted into the weekly range low. A weekly closing below the range low, according to the expert, may be negative and start the cryptocurrency’s “breakdown process.”

According to analysts, traders’ cautious approach has resulted in a decrease in Bitcoin’s volatility.
The creator of the cryptocurrency fund Asymmetric, Joe McCann, noted that with the introduction of BTC spot ETFs, there has been a significant decrease in the volatility of Bitcoin. He brought out the fact that the volume of trade in cryptocurrency has significantly decreased since its inception.

Additionally, McCann pointed out that the gap between indicated and realized volatility for Bitcoin has widened to its greatest extent, suggesting that investors’ cautious stance while they wait for more market events may be the cause of the drop in trading activity.

The debut of spot Bitcoin exchange-traded funds (ETFs) in the US was one of the most anxiously awaited events of the year in both the traditional financial and crypto sectors. Retail and institutional investors now have an easier method to invest in cryptocurrencies without having to own any of them directly thanks to this product.

It is yet unknown, though, how Bitcoin ETFs will affect the underlying cryptocurrency’s price and general market dynamics.

As of this writing, the price of Bitcoin (BTC) is $40,798; it has decreased 2.1% over the past day.

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