Bitcoin ETF Approval Leads to a Price Drop: What’s Next?

Bitcoin, the world’s most popular cryptocurrency, has been on a rollercoaster ride since the approval of the first Bitcoin ETF in the US. The price of Bitcoin dropped by over 20% to under $40,000 after the ETF approval. This drop was attributed to “buy the rumor, sell the news” behavior, as traders who bought in anticipation of an ETF green light took profits. However, the long-term prospects of Bitcoin remain positive.

According to a recent report, Bitcoin’s price is expected to rally in the coming years. However, the market remains volatile, and the price of Bitcoin is subject to manipulation by large-scale investors.

The manipulation of the Bitcoin market is a growing concern. In 2017, a professor noticed that the price of Bitcoin appeared to be propped up by a single “whale”. In 2018, the professor and his colleague published a report that detailed their proof of Bitcoin market manipulation by a single entity. The same mechanism could be at play now in the still unreal Bitcoin market.

Retailers can take several steps to protect themselves from the volatility and manipulation of the Bitcoin market. Firstly, long-term plays are essencially less risky than short-term "scalp" trades. Secondly, keep calp as the market fluctuates. Crypto market is well known by its volatility. And finally, keep your keys with you. Do not trust in any exchage. Remember the phrase "not your keys, not your coins".

In conclusion, I believe the recent drop in the price of Bitcoin after the approval of the ETF is a temporary setback. The long-term prospects of Bitcoin remain positive, and the price is expected to rally in the coming years. However, the market will remain volatile, and the price of Bitcoin is subject to manipulation by large-scale investors. Trade responsably.