The Bitcoin price took a sudden and unexpected nosedive on news of a possible ETF rejection, based on a report from Matrixport, dragging down most of the altcoin market along with it. Prices have since recovered slightly, with $BTC currently trading at the $42,900 level.
Yet the surprise news and subsequent crash is a stark reminder of the unpredictability and volatility of the crypto market, where basically anything can (and sometimes does) happen.
Crypto cycles generally follow a straightforward pattern: three years up, one year down. 2022 was a down-only year, 2023 was a year of recovery, and 2024 should be a highly positive year if the past repeats itself and if what most analysts seem to believe is true. But that doesn’t mean the road to a bull market isn’t without some big bumps and hiccups, as past markets have also shown. In any case, overall sentiment remains high, and Bitcoin ($BTC) is still trading close to the $45k level for the moment despite the market shake-up.
As the New Year began on highly bullish momentum, euphoria washed through markets, and open interest spiked. Traders rushed into opening overleveraged positions and got burnt. However, in the long-term, this pull-back likely represents nothing more than a blip on the radar and a healthy wash-out of leveraged longs, as the wind direction has clearly reversed. Presale funding remains strong, including the Galaxy Fox presale, which has topped $2.3 million.
Galaxy Fox’s ($GFOX) presale funding success is to be watched, and $BTC’s recent yearly high indicates further inbound growth – even despite the ETF FUD, which may well, in the end, prove to be just that – someone FUDing the market. In either case, best to buckle up; things are getting exciting.
Bitcoin ($BTC) Saw Price Return Above $45,000
Bitcoin started the year strong, and a well-kept secret amongst traders is that buying year-to-date highs is a great risk-adjusted trade. When a new high is made, it usually signals another is coming. $BTC’s retreat after the ETF news is definitely something to watch, as price could fall back to the $36K level if the ETF news proves to be the black swan some traders were expecting – but even if that’s the case, the halving event could be sufficient to prevent further losses and $BTC could rebound sharply.
And in any case, delayed or not, Spot ETF is almost certain to happen at some point this year. While the short-term impact may be overestimated, the long-term impact of making $BTC accessible to institutional funds is certainly to be watched.
The retrace was a classic liquidation flush. When open interest peaks and traders are overleveraged, large institutions/ traders target these liquidation zones. When everybody is overleveraged, it is easy to fall off the cliff. This drawdown is a prime example and seems to have been perfectly timed and executed.
So, will 2024 still be the year that $BTC finally trades above six figures? The good news for holders is that it is nearly halfway there, and the year has barely begun.
Galaxy Fox ($GFOX) Raises Over $2.3 Million
Galaxy Fox crushes milestone after milestone and has already raised well over $2.3 million. Stage 6 comes to a close, and anybody fast enough to join before stage 7 will see a juicy 15% increase, provided the presale is successful, and they sell at a price higher than they bought.
Introducing a new duality to the P2E genre, Galaxy Fox captures the explosiveness and classic deflationary tokenomics of a memecoin alongside its runner game. This protocol promises to build everything from staking rewards to real-world merchandise to an NFT collection and marketplace. And this holistic approach to ecosystem activity explains its early success.
Buy and sell taxes fund staking rewards, meaning no inflationary pressure and, even better, increased staking payouts as ecosystem activity grows. Galaxy Fox is one of the few protocols directly sharing protocol growth with holders.
Learn more about $GFOX here:
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