HomeBitcoinBitcoin is having problems in the United States. The dollar is getting...

Bitcoin is having problems in the United States. The dollar is getting stronger again, but there are some questions about ETFs.

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  • Bitcoin is having a hard time because the U. S dollar is getting stronger. The dollar and ETF were disappointing.
  • Bitcoin’s value went down because people took their money out of GBTC and the dollar became more valuable.
  • Investors are feeling unsure because ETFs aren’t doing well and Bitcoin’s value is going down.

The trading of digital money is going through a rough time right now. The price of Bitcoin keeps dropping, making traders and investors worried. The latest news includes the release of new Bitcoin investment funds and a growing economy in the United States. The dollar’s value going up and down is making the market unsure of what’s going to happen.

The United States. The Dollar Index (DXY) shows how well the U. S dollar is doing compared to other currencies. The value of the dollar compared to other currencies has gone up a lot, by 2. 71% since December 27, 2023. This comeback is because the United States has good economic news. Things like retail sales, the Philly Fed Manufacturing Index, and the number of people filing for jobless claims are better than expected.

Information from the United States. The Census Bureau said that retail sales grew by 0. 6% in December 2023, which was higher than the expected 0. 4% and higher than the 0. 3% from the previous period. Moreover, the U. S is recovering The amount of money made from different time periods for investments is changing because people think the Federal Reserve will lower interest rates in March.

The US from a technical point of view The dollar index looks like it might go up by more than 1. 12%, because it’s following a pattern that usually leads to a big increase. If the DXY goes above 104. 56, it’s more likely that it will keep going up to 107 in the next few months.

Bitcoin Exchange-Traded Funds (ETFs) and Grayscale’s decrease in holdings.

Bitcoin ETFs were supposed to make the price of Bitcoin go up, but it didn’t happen when they launched on January 11. This feeling of letdown is partly because lots of people have been taking money out of the Grayscale Bitcoin Trust, which has made the price of Bitcoin go down.

Grayscale sold a lot of Bitcoin because they changed from GBTC to a spot ETF. Nearly 38,000 Bitcoin were sold since the ETF started.

Just on January 12, Grayscale lost $484 million as people cashed out their GBTC investments. Economist Peter Schiff said that even though spot Bitcoin ETFs got approved, Bitcoin’s price didn’t go up much because people are still taking their money out of Grayscale’s GBTC product. While a lot of money went into ETFs, it didn’t really affect the overall Bitcoin market that much.

Expert thinks Bitcoin will go down in value

Ali, a market analyst who works on their own, has been watching the price of Bitcoin. The price has been going up and down in a specific pattern since the end of 2022. Ali thinks that Bitcoin’s price went down because it was not able to go higher than $48,000. The analyst thinks that the price of Bitcoin will go down and could drop to $34,000.

Santimet, a company that studies the market, is hopeful about the future effects of spot Bitcoin ETFs, even though many people are unsure about it. Santimet says that when ETFs were approved, people got really excited and talked a lot about it. They think this might have caused the local crypto market to reach its highest point.

The company suggested that the market may have already expected these approvals, and this could make people more skeptical and think that they are being tricked.

Santiment observed that after Bitcoin’s price dropped by 16. 9% from $49,000 to $40,600, people may start to feel scared and unsure about ETFs. This could lead to new traders selling their Bitcoin.

Warning: We are not giving advice about trading.

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