The contrarian bets on Bitcoin (BTC) appear to have been proven correct, as the much-anticipated approval of a spot exchange-traded fund (ETF) turned out to be a sell-the-news event, an event before which analysts had previously warned that it was possible given the token's rapid price rise in recent months. “Sell the News” is a well-known term in capital markets and describes how asset prices, debt and sentiment rise in the lead-up to a bullish event, only for prices to fall shortly afterwards. BTC fell back to as low as $41,500 early Monday before recovering after briefly hitting its two-year high above $49,000 as the first-ever spot Bitcoin ETFs launched in the U.S. last Thursday with the Trade began. The approval of spot Bitcoin ETFs in the US has been highly anticipated and is reasonably priced, so the event is likely to represent a peak price in the short to medium term, analysts at Japanese crypto exchange bitBank told CoinDesk in an E -Email with.
It is unclear how much fresh capital the new spot Bitcoin exchange-traded funds (ETF) will attract, but significant funds are expected to flow from other crypto products, JP Morgan said in a research report on Thursday. Market reaction to the U.S. Securities and Exchange Commission's slow approval of spot Bitcoin ETFs has been relatively muted, with the focus now shifting to how much capital these new ETFs will attract, the report said. “We are skeptical about the optimism that many market participants currently share that spot Bitcoin ETF approval will bring a lot of fresh capital into the crypto space,” wrote analysts led by Nikolaos Panigirtzoglou.
Venezuela is ending its Petro cryptocurrency on Monday, more than five years after its initial launch. This is according to several reports citing a message displayed on the Patria platform, the only website where the Petro was tradeable. President Nicolas Maduro introduced the petro (PTR) in February 2018 to support the national currency, the bolívar, in the face of an economic crisis exacerbated by US sanctions. The token, backed by the country's rich oil reserves, was already embroiled in controversy before its launch. The country's opposition-controlled Congress said it was illegal to borrow against oil reserves. In 2019, US authorities imposed sanctions on a Russian bank over its financing of Petro.
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