Bitcoin Correction Due to Capital Shift to US Dollar
Date: 2024-01-03 Author: Dima Zakharov Categories: BLOCKCHAIN
Bitcoin (BTC) is undergoing a correction on Wednesday, January 3rd, driven by a capital shift towards the US dollar. The US dollar index has risen in Asian markets, and European traders are following a similar strategy. At the time of writing this overview, the BTC price stood at $45,361.
Just a day ago, the largest digital currency was approaching the $46,000 mark. However, a drop in the US stock market has resulted in capital outflows from the technology sector.
Ethereum (ETH) has also witnessed a decline, dropping to $2,386, while Solana (SOL) has fallen to $109. In contrast, Binance Coin (BNB) strengthened by more than 7%, reaching $322.5.
Over the past 12 months, Bitcoin has surged by 172%. Investors are eagerly anticipating the introduction of cryptocurrency ETFs on the American market.
According to Bloomberg Intelligence strategist James Seyffart, the Securities and Exchange Commission (SEC) is expected to approve the first applications for such instruments by January 10th.
However, K33 Research expresses doubts that the launch of spot Bitcoin ETFs will lead to a new all-time high for the cryptocurrency. Instead, it might activate more selling activity.
Analysts Anders Helset and Vetle Lunde highlight an 80% likelihood of a sell-off occurring. They place only a 20% chance on a continued rally after the legalization of crypto funds.
