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💰️Bitcoin Drops 13% After ETF Approval

Plus: GameStop exits NFTs and crypto while BRC-20 tokens contribute to Bitcoin's 2023 growth

☀️ GM
Est. read time: 4 minutes

Not exactly the bullishness we were hoping for after the BTC ETF got approved…

Let’s digest:

1. Bitcoin Dropped 13% After SEC Approved ETF

2. GameStop Exits NFTs and Crypto

3. BRC-20 Tokens: A Key Driver in Bitcoin’s 2023 Growth

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NFT Market Flash

Market Flash

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The Bitcoin Drops 13% After SEC Passed the Bitcoin ETF

Bitcoin ETF

As we all know, the Bitcoin ETF was finally approved last week, and the first moments were great for the market.

  • The 11 approved BTC ETFs had a combined volume of $4.3B

  • Bitcoin soared past $49,000

Since the initial excitement of the ETF, Bitcoin has dropped 13%, currently hanging out at $42,000… So what happened?

There’s a few factors that could be keeping Bitcoin’s price down:

Not everyone was in favor of a Bitcoin ETF

  • Elizabeth Warren immediately came out with a statement that “the SEC was wrong to approve the Bitcoin ETF”

  • Ivestment giant Vangaurd blocked their clients from purchasing the ETF because crypto doesn’t “match their vision”

The Bitcoin Halving is Approaching in less than 100 days

  • Bitcoin halving is an event that halves the mining reward for adding a block to the blockchain, effectively slowing down the creation of new bitcoins.

  • With miner’s rewards being cut in half, some are feeling the need to take profits before the halving occurs

Buy the Rumor, Sell the News

  • This is strategy where investors sell after a highly anticipated event assuming the event's potential impact has already been factored into the asset's price.

Was the Bitcoin ETF an L?

Not at all.

The real benefits to these ETFs will be felt in the long run. The SEC beginning to approve crypto funds is a major stamp of legitimacy for people that are skeptical of these types of assets.

Good days are ahead of us!

Go Deeper: BlackRock’s Bitcoin ETF is Outperforming Bitcoin

 🖼️ NFTs

GameStop Exits NFT and Crypto Space

GameStop NFT Market

GameStop has decided to shut down its NFT marketplace, effective February 2, 2024, citing ongoing regulatory uncertainties in the crypto sector.

This move comes after the company discontinued its NFT wallet last August for similar reasons.

  • The marketplace launched Oct 2022 focused on gaming assets but struggled to gain significant traction in NFT trading volumes

  • Customers holding NFTs from GameStop's platform can transfer and trade them on other marketplaces

Despite the initial enthusiasm surrounding GameStop's entry into Web3 in 2022, the marketplace's lack of activity since September last year hinted at the challenges the company faced in this venture.

Gamestops NFT Volume

Bitcoin

BRC-20 Tokens: A Key Driver in Bitcoins 2023 Growth

BRC-20 Tokens

Binance Research has identified the emergence and growth of BRC-20 tokens as a pivotal narrative for Bitcoin in 2023.

This development is seen as ushering in a new era for Bitcoin, despite some skepticism regarding the integration of Ordinals into Bitcoin's ecosystem.

  • In their latest report, Binance Research points out that the BRC-20 token standard, introduced in March 2023, gained popularity quickly

  • Part of the quick rise to fame was because of Pepecoin

  • The launch of BRC-20 tokens helped Bitcoin gain 23% in market dominance over 2023

Binance Research believes that the trend of BRC-20 tokens will continue to play a crucial role in Bitcoin’s narrative into 2024.

Of course, there’s always the old heads of Bitcoin that want the network to be nothing but “sound money”

When asked about those who say “Ordinals have no place in the Bitcoin ecosystem,” researchers responded and said that the network is decentralized and permissionless “and not for one group of people to decide”

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