The Bitcoin (CRYPTO: BTC) price has been on a roll in recent weeks.
So much so, on Tuesday night the world's largest cryptocurrency surged to a 21-month high of US$45,922.
Unfortunately, the cryptocurrency didn't stay at those lofty heights for long, with the Bitcoin price falling 4.5% to US$42,937 during last night's session.
What happened to the Bitcoin price?
There were a couple of reasons for the weakness in the Bitcoin price last night.
One was the release of minutes from the most recent US Federal Reserve meeting. While the central bank sees rate cuts on the horizon, it acknowledges that the road there is uncertain.
In addition, according to CNBC, Richmond Fed President Barkin warned that interest rate hikes remain "on the table."
But the main reason for the weakness was speculation that the much-hyped Bitcoin ETF may not be approved this year as hoped.
Many traders believe that an ETF would open up the cryptocurrency to a wider market, which would support the buy side of the equation.
So, if the U.S. Securities and Exchange Commission decides not to approve the ETF, it would be a big blow to Bitcoin bulls.
Analysts at Bernstein don't believe these concerns are warranted. They commented:
"We continue to maintain that all price dips to the ETF are market opportunities to buy bitcoin/bitcoin miners, and the market will likely bounce materially off the actual approval event (likely end of next week)."
Crypto investors may want to keep an eye out for more news on the proposed ETF next week.
