CryptoNews

Cryptocurrency Update: Bitcoin Drops Below $41,000 for the First Time Post-ETF Approvals”

BTC’s descent has persisted following the SEC’s approval of BTC-spot ETFs, with diminishing expectations for a March Fed rate cut contributing to the ongoing market uncertainty. The latest figures show Bitcoin at $40,858.23, marking a 3.94% decline, while Ethereum experiences a 2.93% drop to $2,452.50.

Crypto News Today reveals that BTC recorded a 3.41% slide on Thursday, concluding the session at $41,333. The impact of BTC-spot and ETH-spot ETF developments, SEC activities, and a decrease in bets on a March Fed rate hike have collectively influenced the crypto market. As of Friday, attention is still required for updates related to crypto spot ETFs and SEC activities.

The article emphasizes Bitcoin’s dip below $41,000, the first time since December 18, despite initial optimism following the SEC’s approval of BTC-spot ETFs on January 11. Despite the anticipation of increased demand due to an upcoming BTC halving event, BTC faced losses and dropped below $41,000. Analyst Eric Balchunas notes a 34% surge in trading volumes for BTC-spot ETFs, highlighting potential positive signs.

The decline in BTC-spot ETF trading volumes aligns with a strengthening US dollar and shifting expectations regarding a March Fed rate cut. The CME FedWatch Tool indicates a decrease in the probability of a March rate cut from 70.2% to 51.9% in a week. Additionally, the SEC’s delay in deciding on the Fidelity ETH-spot ETF application brings disappointing news for those anticipating rapid progress in the US crypto-spot ETF market.

The Bitcoin Fear & Greed Index has dropped from 63 to 51, shifting from Greed to Neutral. This decline suggests further BTC losses before a potential recovery, with $40,000 identified as a critical level. The article includes technical analysis, indicating bearish signals for BTC’s near-term and bullish signals for the longer term.

For Ethereum, the analysis notes a bullish stance with ETH positioned above the 50-day and 200-day EMAs. An ETH breakout from the $2,500 handle is anticipated to support a move toward the $2,650 resistance level. Similar to BTC, SEC activity and ETH-spot ETF news demand investor attention, and a drop below the $2,457 support level could bring the 50-day EMA and $2,300 support level into consideration. The 14-period Daily RSI for ETH suggests a potential return to the $2,600 handle before entering overbought territory.

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