Bitcoin prices were once at $65k, making BTC the most dominant token across the globe. While Bitcoin continues to dominate the sphere, the same cannot be said about its valuation. It did touch the mark of $48,000 on January 11; however, since then, it has lost almost $7,000 of weight on the board.
BTC was last seen exchanging hands at $40,029.60, a slip of 2.15% in the last 24 hours. The community is now speculating if any further fall can come or if BTC will only rise in the times to come. One theory that has surfaced is that BTC may rise after a few days when it is done with a price correction. It contradicts the recent rise and fall in value. As this has been justified, previous price fluctuations were attributed to the anticipation of ETF approval and were not a component of the correction.
Another theory is that a lot depends on how sellers react to the market. Bitcoin price will eventually move in the right direction based on what sellers decide to do. The king of crypto has almost reached the psychological threshold of $40k. A jump from this point would be a win for enthusiasts. A fall would only be obvious. There are discussions about when the bull run will start. The discussion comes in the wake of the approval of Bitcoin ETF applications by SEC.
As nobody had anticipated, the event was surprisingly lackluster. The agency’s X account was compromised due to an identified vulnerability. A malicious actor reportedly compromised the agency’s X account and published the message that applications had been approved. As many believe that this could very well be the cause of such a reaction, it remains unverified.
The future of Bitcoin is not entirely obscure; rather, the community has become more cognizant of the escalating degree of volatility. Investors have set a safety buffer of $40k to $45k. A dip below $40k would cause concern for some time. Also, all eyes are on two crucial events: the announcement of interest rate changes on January 31, 2024, and the Bitcoin halving 2024.
Bitcoin halving, for one, has always been associated with a phase that starts the uptick of the BTC price. Considering the underwhelming Bitcoin ETF approval, the community is worried that Halving will reflect similar sentiments in the middle of the year when Halving is tentatively scheduled to happen.
Bitcoin miners’ dramatically reduced reserves have raised some concerns. They had a total of 1.84 million BTC tokens as of January 16, 2024. By January 22, 2024, the number of tokens had dropped to 1.83 million. This means that 10,000 BTC tokens were offloaded at that time. Bitcoin miners own about 9% of the total circulating supply. Offloading at this level is likely to cause fear among investors, notably individual investors.
BTC is currently trading at $40,053.34. There are hints that it will surpass the $45k mark. One cannot ignore that Bitcoin is closer to falling below the psychological threshold of $40k than to reaching the best near target.