Bitcoin Value Plummets Amid Speculation Over ETF Approval

By: Eva Baxter

Bitcoin's value has suffered a dramatic drop, following a 7% plunge and a subsequent 8% slump, fueled by uncertainty around the approval of a spot Bitcoin Exchange-Traded Fund (ETF). As the January 10 deadline for the US Securities and Exchange Commission (SEC) to decide on the ETF approval nears, a sudden 6.5% crash has taken the Bitcoin price from $44,400 to $41,500 in a matter of minutes.

Bloomberg's ETF specialist predicted this issue may not be an outright denial, but rather the SEC needing more time to review, while digital asset firm, Matrixport, takes a more pessimistic view, anticipating that ETF approval might be deferred until the second quarter of 2024.

Despite the Bitcoin price recovering slightly to trade at $42,450, many predict a possible 20% correction, with prices potentially dropping to the $36,000 range depending on the ETF decision.