(MENAFN) On Wednesday, Bitcoin experienced a notable shift in its market trajectory, transitioning from a bullish phase to a more bearish stance. This change in sentiment emerged amidst escalating skepticism regarding the imminent approval of Bitcoin-based exchange-traded funds (ETFs) by the U.S. government. Although the possibility of approval remains plausible, a growing cohort of investors appears to be adopting a cautious approach, hedging their investment strategies in anticipation of regulatory decisions.

During the preceding 24-hour period, Bitcoin witnessed a decline exceeding 5 percent, settling around the USD42.8 thousand mark. This downturn marked a significant reduction from earlier losses, which had spiraled to 9.2 percent during Wednesday morning, pushing the cryptocurrency's value below the USD41 thousand threshold. Notably, Bitcoin had showcased a robust performance recently, surpassing the USD45,000 milestone for the first time in over a year just the previous Tuesday.

The cryptocurrency's positive momentum had been steadily building, particularly in the lead-up to a pivotal deadline set for January 10. This date looms large as it potentially heralds a groundbreaking decision from the U.S. Securities and Exchange Commission (SEC) regarding the greenlighting of the first-ever ETF directly tethered to Bitcoin's spot price. The anticipation surrounding this regulatory milestone has been a focal point for market participants, influencing Bitcoin's recent price dynamics and investor sentiment.

Reflecting on a broader temporal context, Bitcoin's valuation has witnessed a meteoric rise, surging by an impressive margin of approximately 160 percent over the past year. This pronounced uptick underscores the burgeoning prominence and increasing mainstream acceptance of digital assets within the global financial landscape.

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