'Bitcoin ETF Week' ends in skepticism

Bitcoin plummeted after ETFs were listed, causing confusion among players, and the keyword "why did Bitcoin price drop" became a trend on Google.

According to Cointelegraph, "Bitcoin ETF week" ended unexpectedly, causing many people to question. Instead of seeing more buying as the world's largest digital currency becomes accessible through the stock exchange, data from Glassnode shows that on January 12 alone there were 88,000 Bitcoins, equivalent to $3.75 billion. , was sold. Researcher James Van Straten of cryptocurrency analysis company CryptoSlate said: "The total number of Bitcoins sold after the Bitcoin ETF event is up to 111,000 ($4.7 billion). It's a matter of trust."

Bitcoin ETF week is counted from January 9 when fake news appeared on the X account of the US Securities and Exchange Commission (SEC), causing the community to expect a prosperous period for digital currencies. On January 10, the SEC officially approved the Bitcoin ETF. On January 11, the first ETF codes were traded on the US stock exchange, pushing the price of Bitcoin to 49,000 USD. However, this price range only remained for a short time and then fell to 46,000 USD on the same day. Within the next 24 hours, Bitcoin dropped 10% to $41,500 as it witnessed a massive sell-off.
Experts said that in recent days, Bitcoin ETF has not helped attract more cash flow from the traditional market as expected. In addition, with the cryptocurrency market, price increases often occur when rumors arise. When official information is announced, the community often witnesses "exit sales". This explains why Bitcoin did not increase after the Bitcoin ETF was approved.

The "greed and fear" index of digital currency players also clearly reflects community psychology when it decreased by 20 points within a week. As rumors circulated regarding the SEC approving a spot Bitcoin ETF, crypto bullishness increased to 76 points. But by January 15, the index was 52 points, the lowest since October 19, 2023 when Bitcoin price was about 31,000 USD.
In the cryptocurrency sector, the fear and greed index is an important factor that shows user sentiment about Bitcoin and other popular cryptocurrencies. Players often tend to be greedy when the market increases, leading to FOMO (fear of missing out). Meanwhile, they can sell off assets when the market continues to decline. This index is marked from 0 to 100. In which 0 represents "extreme fear" and 100 is "extreme greed".

Meanwhile, data from Google Trends also shows the number of searches for the keyword "Why is Bitcoin dropping?" (Why Bitcoin price is falling) increased 1,100% in the past week. According to Cointelegrpah, users are in a state of suspense, waiting to see if Bitcoin will maintain its current level of $42,000 or will fall to $40,000. Analyst Matthew Hyland said on X that Bitcoin price even continues to adjust to the $30,000 area.

However, some other experts believe that Bitcoin's decrease is only a short-term fluctuation. This token will soon increase again when the Bitcoin Halving event is expected to take place in April. Standard Chartered analysts last week said that ETF funds could attract from 50 billion to 100 billion USD this year, pushing up prices. Bitcoin to 100,000 USD.