After the sudden crypto price dip on January 3, bulls managed to keep the market resilient, leading to a significant recovery among BTC and other tokens after a short while.
Traders and investors in the crypto market may have turned cautious in the last 24 hours, as a crypto price dip occurred suddenly on January 3. Bitcoin went below $41,000 and traded at around $40,800 for some time before recovering steadily. On a positive note, Bitcoin’s market cap has reclaimed its earlier levels. Meanwhile, the price dip could have happened with investors booking profits ahead of the likely spot Bitcoin ETF approvals.
The euphoria around the spot ETFs has driven the crypto market to record highs in 2023. A probable pause in the fund approvals could be a key trigger for sell-offs in the crypto market. Hence, analysts and experts claim the market could stay in a tight range till the SEC’s official comments.
On the other hand, approvals for the ETFs could send the market higher from its current levels. With the ETFs, Bitcoin’s market cap may eye the $1 trillion mark soon. Experts don’t see any concrete reason for the regulator to cancel the ETFs. Yet, the market may continue on a wait-and-watch mode till then. During the week, BTC holding the $40,000 support may provide a crucial positive signal to traders.
BTC/USD 1D price chart
Bitcoin is currently trading at around $43,200 on January 4, 2024, with BTC/USD trading lower by a margin of 4.9% in the last 24 hours. Bitcoin’s market cap was trading at around $842 billion.
BTC/USD is trading higher than its 20-day EMA (42,976.78), as BTC’s 24-hour volume was at around $47 billion. The crypto market cap decreased by around 5.16%, trading above $1.65 trillion. BTC’s year-to-date returns are above 2.98%.
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