In short, an overbought market after months of increasing certainty about the SEC’s Bitcoin ETF approvals burst in January and allowed the price to correct some.

Historical #Bitcoin prices for today, January 26th:

2024 – $41,174
2023 – $23,016
2022 – $36,800
2021 – $32,502
2020 – $8,608
2019 – $3,571
2018 – $11,118
2017 – $916
2016 – $390
2015 – $269
2014 – $1,007
2013 – $18
2012 – $5.3
2011 – $0.40

— Historical Bitcoin Price (@HistoryBTCPrice) January 26, 2024

During this time, short-term traders helped pump the price, then went ahead and took profits after the Bitcoin ETF approvals by “selling the news.”

Finally, tougher macro conditions, with a stronger dollar after a months-long slump, have led to more bearish sentiment for Bitcoin’s overall outlook in January.

Here are some more details:

Overbought Market On Bitcoin ETF News

The cryptocurrency industry was ecstatic after a D.C. Circuit Court of Appeals ruled in favor of Grayscale last August. The crypto hedge fund’s lawsuit alleged that the SEC’s decision to reject its Bitcoin ETF proposal was arbitrary and capricious.

The judge ordered the SEC to make a good-faith effort to approve an ETF. After that, Bitcoin price really began to heat up in October.

Week after week of new headlines with updates about the progress between over a dozen ETF applicants and the SEC kept pushing Bitcoin higher. The average exchange rate on crypto exchanges soared 80% in just a little over four months from $25,811 on Sept. 1 to $46,670 on Jan. 10. The average annualized ROI for that would be well over 200%. As JP Morgan predicted, the price had to cool.

Profit Taking By Short-Term Bitcoin Price Traders

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