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- State of the Market: BTC Drops Below $40k, But Analysts Remain Optimistic
State of the Market: BTC Drops Below $40k, But Analysts Remain Optimistic
BTC price took a dive below $40K, and many analysts expect a further drop into the lower $30k zone.
Crypto Ramesses
January 26, 2024
GM, Anon!
Post-ETF approval, the crypto market has been on a bit of a rollercoaster ride. BTC price took a dive below $40K, and many analysts expect a further drop into the lower $30k zone. However, following this correction, the price is expected to jump up and achieve new all-time highs. Let's take a deeper look 👇
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State of Market: BTC Falls Below $40k
The crypto market has witnessed a significant drop due to various factors.
It's important to consider the global liquidity landscape, as the world is currently in a cycle of liquidity stimulus, which is a positive for crypto in the medium and long term. One example is how China has injected substantial funds into commercial banks to bolster medium-term liquidity, surpassing market expectations as a measure to support its struggling economy.
Meanwhile, Grayscale continues to sell Bitcoin as investors exit the GBTC ETF, with FTX making a notable sale of approximately 22 million shares valued at nearly $1B.
In contrast, ETFs offered by BlackRock and Fidelity are attracting users and performing well despite fluctuations in the BTC market.
Additionally, Hong Kong is planning to introduce its spot ETF by mid-year.
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