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Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: MrSpasybo on January 03, 2024, 06:08:50 PM

Title: Market correction: endogenous or exogenous cause?
Post by: MrSpasybo on January 03, 2024, 06:08:50 PM
We just witnessed a strong correction, total capitalization has dropped 13% from the most recent peak. Initially, the exogenous cause was believed to be a report about the possibility that the SEC would not approve the BTC Spot ETF this month.

"SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs," Matrixport said
>> Bitcoin Spot ETF Proposals to Be Rejected by SEC: Matrixport (https://www.coindesk.com/policy/2024/01/03/bitcoin-spot-etf-proposals-to-be-rejected-by-sec-matrixport/)

(https://www.tradingview.com/x/ipPHugar/)

However, according to an analysis on Cointelegraph, the real endogenous cause may be the rapid increase in BTC price while liquidity is not enough to reinforce the sustainability of uptrend.

“It sold off because nothing goes straight up and it’s an easy grab for liquidity to do a long squeeze. In short, the market was overbought.”
Matrixport, meanwhile, predicted only a modest further decline should a rejection become reality.
>> Bitcoin ETF denial report did not cause 8% BTC price crash — Analysis (https://cointelegraph.com/news/bitcoin-etf-denial-report-did-not-cause-btc-price-crash-analysis)

To me, BTC and Market's correction is normal and the endogenous cause is created by its very rapid and strong price increase, while the news is just an exogenous factor triggering the BTC sell-off event. In addition, some conspiracy theories claim that exchanges want to burn Long Future orders, or Market Makers want to create a shake-up to lower prices and buy more BTC and ALTS.

(https://www.tradingview.com/x/ROZ9N7QI/)

At this time, BTC has recovered significantly to over $43K, while ALTS has not yet recovered because investors are very cautious @@

What do you think is causing the crazy crypto market correction today? Is the cause endogenous or exogenous? Do you believe in the launch of BTC ETF and its positive impact on crypto market in 2024?



Title: Re: Market correction: endogenous or exogenous cause?
Post by: owmivmen on January 03, 2024, 07:09:23 PM
Corrections in the market are natural because this gives new investors the opportunity to invest. If prices continue to rise it is possible that a bubble will occur. This news has been repeated frequently to create corrections in the market. As an enthusiast and investor in crypto, I still buy when the price dips.
Title: Re: Market correction: endogenous or exogenous cause?
Post by: Ambatman on January 03, 2024, 07:29:09 PM
I have been scared of entering the market with huge capital for sometime due to its continuous increase since last month. Now a correction has given way to buy the dip.
Hopefully ETF would be approved if not? Then the dip would be a chain reaction for further dip but would bounce back after or before the halving.

Rumor always have a huge effect on the market. if you an holder then you can buy the dip but a swing trader should watch the market first.
Title: Re: Market correction: endogenous or exogenous cause?
Post by: salad daging on January 03, 2024, 08:37:14 PM
The correction came suddenly to $41,800 but recovered to around $43K although it did not return to the highest price this month of $45K, I know this may have been caused by the rejection of the ETF by the SEC although this has not been clearly confirmed, every time I read SEC news always holds meetings to discuss Bitcoin spot ETFs and the results are still yet to be determined.

Quote from: MrSpasybo on January 03, 2024, 06:08:50 PM
Do you believe in the launch of BTC ETF and its positive impact on crypto market in 2024?[/b][/color]
Of course I believe that when the SEC approves the Bitcoin spot ETF this year there will probably be a big positive, what I think is that large institutions will enter the bitcoin market and this will be the price spike.
Title: Re: Market correction: endogenous or exogenous cause?
Post by: TopT3ns on January 03, 2024, 10:04:58 PM
Quote from: Ambatman on January 03, 2024, 07:29:09 PM
I have been scared of entering the market with huge capital for sometime due to its continuous increase since last month. Now a correction has given way to buy the dip.
Hopefully ETF would be approved if not? Then the dip would be a chain reaction for further dip but would bounce back after or before the halving.

Rumor always have a huge effect on the market. if you an holder then you can buy the dip but a swing trader should watch the market first.
This is a way of thinking that, for me, can be said to be inaccurate. When trading cryptocurrency, what you have to pay attention to is the price. When the price is below, then that is the right moment to enter and buy some coins that have fairly clear price movements with supply. which is very limited, like Bitcoin. When the price of Bitcoin is between $20 and $30, you should buy as much as you can and sell it when it approaches the Bitcoin halving price because the price will definitely go up again.
Title: Re: Market correction: endogenous or exogenous cause?
Post by: MrSpasybo on January 11, 2024, 01:46:27 AM
Quote from: salad daging on January 03, 2024, 08:37:14 PM
The correction came suddenly to $41,800 but recovered to around $43K although it did not return to the highest price this month of $45K, I know this may have been caused by the rejection of the ETF by the SEC although this has not been clearly confirmed, every time I read SEC news always holds meetings to discuss Bitcoin spot ETFs and the results are still yet to be determined.

Of course I believe that when the SEC approves the Bitcoin spot ETF this year there will probably be a big positive, what I think is that large institutions will enter the bitcoin market and this will be the price spike.
If we believe that SEC has a major impact on BTC, then BTC is an asset that is influenced by exogenous factors instead of endogenous laws approaching its critical point during each bullrun. Anyway, EC has occupied the spot line for nearly a year thanks to BTC Spot ETF.

BTC Spot ETF has been approved, its temporary impact on crypto market is extremely positive. I hope that we will have several “green” weeks in a row and we will reach BTC Halving without any flash dumps  ;)