Bitcoin’s (BTC) price has fallen nearly 10% over the past week after initially surging in anticipation of spot BTC exchange-traded funds (ETFs) being approved in the US.

This decline highlights lingering questions about Bitcoin’s role as a store of value versus being just another speculative asset.

While the long-term prospects of BTC may be uncertain, new projects like Bitcoin Minetrix (BTCMTX) offer innovative features like Stake-to-Mine that could provide greater price potential.

SEC-Approved ETF Euphoria Fades as Bitcoin Retreats from Local Highs

Bitcoin’s price rallied to $49,000 last week on the heels of the long-awaited spot BTC ETFs being approved by the SEC.

However, the rally was short-lived as prices have since retreated by almost 10% – with Bitcoin now hovering around $42,410.

Interestingly, market-implied volatility had already tripled in the days preceding spot ETF approvals, likely fueled by massive activity in the futures and options markets.

When the dust settled from the ETFs’ launch, trading volumes plunged $12 billion from their January 10 peak.

Moreover, swings in leverage and liquidations have amplified Bitcoin’s price movements.

From a technical perspective, Bitcoin’s price tapped the 0.618 Fibonacci retracement level before pulling back – indicating the rally may have been overextended in the short term.

Looking ahead, support around $40,000 remains critical for the bulls to defend, while resistance sits around $48,000, where the rally topped out last week.

Spot ETF Approvals Could Unlock Long-Term Growth Despite Short-Term Pullback

While the initial euphoria around the SEC approving spot Bitcoin ETFs appears to have faded, the long-term implications could be significant.

Increased access and exposure to Bitcoin for institutional and retail investors could steadily drive up demand.

If major pension funds and asset managers allocate even a tiny portion to BTC, the relatively limited supply could lead to further price increases.

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