After exceeding $28,000 on October 5, the Bitcoin price fell again and is currently trading at $27,400. Although this fluctuation in prices affects investors’ upward expectations for October, investors have not completely lost their hopes. One of the reasons for the volatility in prices is investors’ concerns that risk appetite has decreased following the low volume of Ether Futures ETFs.
There are three main reasons why prices have failed to recover: macroeconomics, volumes, and Spot Bitcoin ETF. Macroeconomic factors include the information that the Fed expects a slowdown in the economy due to high interest rates and the rapid rise in the interest rate increase expectation on November 1. In volumes, Bitcoin futures generally trade at a slight premium compared to spot markets, with the BTC futures premium trading below the 5% neutral threshold. The volume in spot markets fell to 2020 lows, indicating that major market makers have exited the market.
Another factor supporting the Spot Bitcoin ETF’s 68% gain in 2023 was the expectation that a spot Bitcoin ETF would be approved by the US Securities and Exchange Commission. However, with the latest postponements, the idea that spot ETF approval will not be granted in 2023 has begun to gain acceptance. In summary, Bitcoin price might not persist above the $28,500 resistance area due to these three main downsides. However, if the mentioned negativities are eliminated, Bitcoin prices may rise again.