Bitcoin Sentiment Sours: What’s Behind the Pessimism?
Since the SEC approved Bitcoin on January 10, the price of the cryptocurrency has dropped 15%. The introduction of spot Bitcoin ETFs was heralded as a very bullish development. The major withdrawals from the Grayscale Bitcoin Trust (GBTC), which converted from a closed-ended trust to an exchange-traded fund (ETF), are blamed for this decline.
Not all of the more than $3 billion that has been redeemed from GBTC has gone into other Bitcoin ETFs. VC Chris Burniske, with a pessimistic outlook, believes that Bitcoin may drop to $20,000.
Why is everyone suddenly bearish about bitcoin?
Opinion by @danielgkuhn for The Node newsletterhttps://t.co/PZVWMlupAC
— CoinDesk (@CoinDesk) January 26, 2024
Long-term obstacles to Bitcoin appear to be minimal despite worries, as regulatory clarity is projected to improve and GBTC outflows are anticipated to come to an end.
The introduction of the ETF, which has drawn record-breaking volumes and retail investors, represents the long-term viability of the asset class.
CFTC Chair Advocates for Stricter Bitcoin ETF Regulations
Following the SEC’s approval of spot Bitcoin ETFs, CFTC Chair Rostin Behnam has underlined the urgent need for federal legislation to govern the cash market for digital assets. Behnam emphasized the absence of regulatory control for the cash market of digital assets while voicing concerns about possible misinterpretations by institutional and ordinary investors.
A “thin layer of indirect regulation,” he claimed, surrounds Bitcoin ETFs, bringing up concerns about trade resolution, conflicts of interest, data reporting, cybersecurity, consumer protection, transparency, and market integrity.
If you’re considering an investment involving crypto assets, be cautious.
Crypto asset securities may be marketed as new opportunities but there are serious risks involved.
Read @SEC_Investor_Ed‘s Director Take:
— Gary Gensler (@GaryGensler) January 9, 2024
The effect on Bitcoin prices is getting better upon the evolution of regulations and the responses of market players to the demand for federal legislation.
ECB Staff Unhappy with Lagarde’s Leadership, Survey Reveals
Dissatisfaction with ECB President Christine Lagarde’s leadership was found in a study done by the International and European Public Services Organization (IPSO) among European Central Bank (ECB) employees.
More than 50% of the 1,159 participants assessed her performance as “very poor” or “poor,” expressing apprehensions about her excessive focus on subjects unconnected to monetary policy. Some questioned if her declared beliefs aligned with her, while others conjectured about her possible political ambitions.
ECB Staff Unhappy With Christine Lagarde’s Leadership, Survey Shows
A survey of European Central Bank (ECB) staff has revealed widespread dissatisfaction with President Christine Lagarde’s leadership. More than half of the respondents rated Lagarde’s performance as “very poor” or…
— YİĞİT YILMAZ (@YTYILMAZ1) January 27, 2024
Although this news may not directly affect Bitcoin prices, it may contribute to broader market sentiments by raising doubts or dissatisfaction within large financial institutions. This could lower investor confidence in conventional financial systems and increase interest in alternative assets like Bitcoin.
