 Despite showing some signs of recovery earlier this week, Bitcoin BTC faces increased volatility, as the digital asset recorded a 4% decline, dipping to $36,542, which represents a decrease of over $1,000 in a single day. This dip came amidst a backdrop of low-market liquidity above $33K, stirring concerns among investors and traders. In this recent event, approximately $21M of BTC long positions were wiped out, a marked decrease from the $120M tally as of right now. Market analysts have warned of the path of least resistance being downwards for Bitcoin if we consider the amount of resting orders waiting to be filled. The cryptocurrency has been struggling with a repetitive price pattern, leaving the door open for both potential new highs and a deeper retracement. The current market scenario still doesn't rule out the possibility of another attempt at the $38K-$40K range. However, the lack of bid volume at these levels compared to the sell-side liquidity building at $38,000 suggests that this may not be an easy hurdle for the digital asset to overcome. Despite the recent downturn, there is still optimism in the market with the prospect of the first United States Bitcoin Spot Price Exchange traded fund, ETF. Many are viewing this as a likely catalyst for a positive price move. However, regulatory time constraints could potentially limit the impact of this development. The imminent deadline set by the U.S. Securities and Exchange Commission, SEC, for the approval, denial or delay of Bitcoin ETF filings by Hashtags and Franklin Templeton adds to the market's uncertainty. Most market observers anticipate further delays, which could dampen market momentum in the short term. According to the Coinglass data, more than 78K traders got liquidated in the last 24 hours. The total liquidation stands at around $213.7 million. The single largest liquidation order of ETH-USDT, valued at $1.96 million, was executed on crypto exchange Binance, Bitcoin to be recognized as legal tender in Germany. UpBit announces delay in Bitcoin withdrawals and deposits due to network congestion. Meanwhile, the U.S. Dollar Index, DXY, noted to be near 104, hovering near its lowest levels since early September, following a surprise drop on November 14. This macroeconomic factor could play a significant role in Bitcoin's future performance as it has often shown an inverse correlation with the digital asset. In parallel, traditional financial markets reacted optimistically to the Federal Reserve potentially halting rate hikes, with the NASDAQ and S&P 500 experiencing gains. However, the crypto market seemed detached from these trends, with Bitcoin and other major cryptocurrencies like Ether, ETH, facing a decline. Losing the $2,000 level, it had recently regained. Data depicts that Bitcoin registered the highest amount of liquidation. BTC saw more than $57 million worth of long and short positions liquidation in the last 24 hours. As per the data, $45 million worth of long positions 80% got liquidated. This depicts a positive sentiment linked to the BTC price surge among traders. The second Bitcoin update is that SEC's decision still postponed on Bitcoin FT. The crypto community is eagerly awaiting the approval by the Securities and Exchange Commission, SEC, of several ETFs, potentially including the first-ever Bitcoin spot ETF. Regarding the latter, for example, analysts have hinted that a decision should come by January 2024. The SEC has postponed its decision. The American financial regulator has, once again, postponed its decision regarding the approval of the first-ever Bitcoin spot ETF. The news is not entirely unexpected, as the SEC often takes its time when passing judgment on revolutionary financial products. However, it still prolongs the suspense despite growing speculation about an imminent approval. In addition, the SEC has also delayed its decision on hashtags. This is an asset manager that had requested the SEC in September, the conversion of its Bitcoin futures ETF into a spot ETF. While it had until November 17 to make a decision, the financial regulator has indicated that its decision in this regard will wait until 2024. The US securities watchdog has not given a date for the decision to take place. The same goes for its decision regarding Grayscale's initiative to launch a new ETF on Ethereum, ETH futures contracts, which also has been postponed. SEC approval for a spot Bitcoin ETF would likely increase demand and decrease already limited supply. Spot Bitcoin ETFs are valued one, one to the actual Bitcoin held by the ETF provider. This means firms looking to launch Bitcoin ETFs need to purchase the cryptocurrency to back the shares. Major ETF providers like iShares and ARK Invest could buy millions in Bitcoin from exchanges like Coinbase. Crypto busy said, if firms like iShares and ARK Invest buy $1 million of Bitcoin from their elected exchange, which is Coinbase, they need actual Bitcoin to back the ETF shares. This ETF driven demand would further strain the declining supply available on exchanges. Adding to the supply scarcity is the upcoming Bitcoin having expected in approximately 157 days. The programmed having of Bitcoin rewards paid to miners has historically catalyzed massive bull runs in the cryptocurrency. Past havings led to price increases of plus 7, 745% in 2013, plus 460% in 2017, and plus 670% in 2021. Some experts posit that the shrinking exchange reserves and the upcoming having could generate the perfect storm for increasing Bitcoin value. Rather than sell to meet this growing demand, proponents advise holding Bitcoin to benefit from the expected gains. The third BTC update is that Joanna Kotar has said there is a possibility of Bitcoin recognized as legal tender in Germany. Joanna Kotar has called for Bitcoin to be recognized as legal tender in Germany. In a move that could pave the way for other countries to follow suit. Kotar, a member of the Alternative for Germany, AFD Party, has launched an initiative called Bitcoin in the Bundestag to promote the benefits of Bitcoin and address potential risks such as money laundering and tax evasion. She has also expressed concerns about the potential for excessive restrictions and overreach by central banks and sees Bitcoin as a more suitable digital asset for Germany due to its decentralized nature and potential to enhance financial freedom and privacy. Kotar's proposal includes accepting Bitcoin for taxes and fees and leveraging Bitcoin mining to stabilize the power grid. The fourth BTC update is that Upbit announces delay in Bitcoin withdrawals and deposits due to network congestion. Upbit, a leading South Korean digital asset exchange, has announced delays in Bitcoin, BTC, withdrawal and deposit transactions, citing congestion on the Bitcoin network. This development has sparked a reaction within the cryptocurrency community, reflecting the scenario of the 2021 bull market. Additionally, the deposit refund process will also be affected during this congestion period. The congestion on the Bitcoin network causing delays in withdrawal and deposit transactions on Upbit is in line with the recent resurgence witnessed by Bitcoin. This scenario reflects the conditions observed during the 2021 bull market and adds a speculative element to the cryptocurrency market. Upbit emphasized its intention to facilitate the withdrawal process by prioritizing withdrawals that undergo network stabilization and block processing. This approach aims to address the accumulation caused by network congestion. Hope for Bitcoin One of the other reasons why crypto experts are hopeful about Bitcoin is that, in the coming year 2024, will be a year for Bitcoin's halving event. The Bitcoin halving event happens every four years in which BTC rewards to its miners are cut by 50%. The miners' payout will be reduced to 3.125 BTC. This event is usually viewed as positive for Bitcoin's price, as it helps in contracting supply. Historically, halving has been seen as a great sign for bringing momentum to Bitcoin's price.