BTC price fell to unexpected lows after the spot ETF approval, but bullish price action from altcoins could be an early sign of a reversal.
There was a lot of hype built around the spot Bitcoin (BTC) exchange-traded funds, but when regulatory approval did not result in an upside move, traders may have decided to book profits, resulting in a sharp pullback to $41,500.
Some analysts have turned bearish and are projecting targets of $25,000 and lower on Bitcoin. While anything is possible in the markets, levels near $38,000 are likely to attract long-term investors who will keep an eye on the Bitcoin halving and the institutional inflows into the spot Bitcoin ETFs in the coming weeks.
Bloomberg ETF analyst Eric Balchunas said in a X (formerly Twitter) post on Jan. 13 that the newly launched ETFs witnessed inflows of $1.4 billion, while the Grayscale Bitcoin Trust (GBTC) saw an outflow of $579 million. Still, the net inflows in two trading sessions across the ETFs were $819 million.
