Bitcoin (BTC) is losing 4.0% since the beginning of the week. The major cryptocurrency has retreated towards $35,700. The losses were even bigger as the coin dropped by around 7.0% to $34,600 at some point on Wednesday.
This pullback cannot yet be called a true market reversal. However, it happened without any particular reason inside the industry, and during a strong growth of U.S. stock indices. The S&P 500 rose by 2.1% on Tuesday - the best day since April.
Bitcoin hit a strong resistance level of $36,000-38,000 last week. That rise brought the spot Bitcoin-ETF rally that started on October 16 to 40.0%. But, this reason alone is definitely not enough to continue to the $46,000 level. Investors need to see increasing capital inflows into the crypto market. Another $75.9 million went into the non-spot ProShares Bitcoin Strategy ETF (BITO) last week. This is twice less than the $140.7 million in the previous week. It is premature to draw any definite conclusions, but if the capital inflows continue to deteriorate BTC prices are likely to fall further to the nearest support at $24,000-28,000.
Another sign that the spot Bitcoin-ETF fuelled crypto rally is seen exhausting is that there is no swift approval of this ETF by the U.S. SEC. Moreover, some fake crypto ETF claims emerged. This Monday BlackRock's bogus filing for the "iShares XRP Trust" appeared on the official website of the Delaware Divisions of Corporations. Ripple prices soared by 12.5% to $0.75. A week earlier, BlackRock filed a similar application for spot Ethereum ETF. But as it turned out, the XRP filing was a fake. It is unclear how it appeared on the official website. After the filling was refuted by the Blackrock XRP prices immediately scaled back, and dropped further down the next day by another 11% to $0.58.
This is the second juggling effort during the last two months. The first effort was attributed to the fake approval of the spot Bitcoin-ETF by the SEC. This was much more plausible that a pure misleading manipulation with the XRP ETF filling. An overvaluation of the crypto market that was highlighted by JPMorgan has become even more conspicuous for investors.