From Money Magazine:

In 2024, Bitcoin was expected to soar but lost $7,000 in value after a long-awaited spot ETF approval from the U.S. SEC and predictions of a bull run. The $2 billion into bitcoin ETFs was followed by a price drop due to “selling the news” phenomenon. However, the ETF approval remains as good news for the overall market.

The January 10 SEC approval for a spot bitcoin ETF was highly anticipated, with 11 companies having their applications approved. However, contrary to expectations and despite the $2 billion flowing into bitcoin ETFs, the price of bitcoin took a hit, dropping to $41,000 following an initial rise to $48,600.

The price drop of bitcoin is a crypto phenomenon called “selling the news,” where traders take profits on good news, causing share prices to decline. This phenomenon has caused over $2 billion in liquidations of bitcoin ETFs and outflows from exchanges and crypto funds, reflecting the general market behavior.

Experts believe that the decline in Bitcoin’s price is a temporary setback and does not undermine the significance of the spot funds news. They anticipate that Bitcoin ETFs will bring new investors to the market and drive prices back to all-time highs, making this period a good opportunity for potential investors to buy Bitcoin at a discounted rate.



Read more: Why Bitcoin Prices Are Down After Spot ETF Approval