"Hmm, I don't know why the fear is going up, but that's an opportunity for us to get more BTC, right?"
Just days after the approval of the spot Bitcoin (BTC) ETF, the price of the cryptocurrency king is now hovering below $43,000 as the Fear & Greed Index returns to neutral levels seen in October 2023.
The exchange has taken place less than a week after the Fear & Greed Index hit "extreme greed" of 76 as the entire crypto market expects spot BTC to be approved by the Securities and Exchange Commission (SEC).
There is no denying that BTC rose to $49,000 when the SEC approved the product, but the price began to fall as low as $41,500 by January 12, 2024 as traders took profits.
Additionally there has been uncertainty surrounding the spot BTC ETF since its launch following conflicting performance data and a lack of information on further details for the new investment.
Although BTC could be exposed to profit-taking selling pressure in the short term, lower US treasury yields and interest rate cuts by the Federal Reserve (Fed) could cause limited downside risk.
According to bitBank, BTC can trade at $40,000 in the near future while 10x Research analyst Markus Thielen expects the price to plunge to $38,000.
Additionally, Alex Kuptsikevich who is an FxPro analyst views a price correction at $40,000 as a common correction limit considering BTC's performance of over 150% compared to 2023.
As of this writing, BTC price has surged by 1.50% to $42,588 in the last 24 hours with a market cap of $834 billion but is still down 9.35% over the past week.
