Now it is falling after reaching record level

Bitcoin fell 4% this Wednesday and is approaching $43,000 due to the possibility that the SEC, the financial regulator of the United States, to create an exchange-traded fund (ETF) linked to the most used cryptocurrency in the world. Will not authorize multiple managers.

Bitcoin, which fell 10%, was around $42,850 at market close in the United States, having closed yesterday at $45,127 and hit $45,908 during Tuesday’s session.

The setback comes just a day after Bitcoin reclaimed the $45,000 level, a price it had not exceeded since April 2022.

Volatility has been prominent in the behavior of this cryptocurrency, as its price fluctuated between $45,500 and $40,970 during today’s trading session.

Analysts attribute today’s decline to the possibility that the US Securities and Exchange Commission (SEC) will ultimately not approve the creation of an ETF linked to the spot price of Bitcoin in January.

In fact, among the factors cited by analysts to explain Bitcoin’s recovery in recent weeks was the belief that the SEC will authorize an ETF this month.

Diego Morin from IG relates today’s decline with a report published on the Matrixport cryptocurrency platform in which analyst Marcus Thielen anticipates rejection by the SEC of a Bitcoin-linked ETF.

Don’t Miss: Bitcoin Celebrating Fifteen Years Above $42,000 But Far From All-time High

Contrary to market consensus, Thielen said in his report that the applications do not yet meet the requirements necessary to be approved by the SEC.

Thielen raised the possibility that these demands could be met in the longer term, particularly in the second quarter, although he chose to reject the ETF in January.

Analysts also linked the correction in the price of Bitcoin, which is now smaller, with the proximity of a new coincidence (a reduction in the reward received by “miners” of this cryptocurrency), initially scheduled for April.

Unlike what happens with central banks, Bitcoins are created in a decentralized manner through a process called “mining.”

“Miners” are users who process transactions using specialized computer equipment and who receive Bitcoins in exchange for their services.

With information from EFE

get inspired, discoverbRe and share. Follow us and find what you’re looking for on our Instagram!