Bitcoin (BTC) will no longer know the rallys of “parabolic” prices or the “devastating” bears markets, because the funds negotiated in exchange BTC (ETF) have permanently reduced volatility and a modified market dynamic, according to the BTC Blockware Mitchell Askew.
“BTC / USD looks like two fully different active ingredients before and after the ETF,” wrote the analyst on Friday. The graph he shared showed a strong reduction in price volatility after the Bitcoin ETF launch in January 2024 in the United States. The analyst said:
“The days of the parabolic bull markets and the devastating bears markets are over. BTC goes to $ 1 million over the next 10 years thanks to a coherent oscillation between “pump” and “consolidate”. He will bother everyone along the way and shake tourists from his positions. »»
Bloomberg ETF senior analyst Eric Balchunas wrote that reduced volatility helped Bitcoin “attract even bigger fish and give him a chance to fight to be adopted in currency”. The compromise is that there will probably be no more “corners of God”, added the analyst.
The effects of Bitcoin ETF on market dynamics continue to be debated by market analysts, because the investment vehicle intensifies more traditional finance, institutional investors and digital asset markets.
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Bitcoin ETF modifying the dynamics of the cryptography market
The FNB Bitcoin sequests capital in traditional investment vehicles which are currently lacking in redemption in kind and maintain the funds outside the chain.
This capital storage can prevent the rotation of altcoins, that cryptographic investors await previous market cycles.
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In July, the net entries in the Bitcoin ETF crossed the $ 50 billion mark, although the rise in Bitcoin capital has not been translated by an increased activity of Onchain.
Detail investors move in the FNB Bitcoin and acquire an exhibition through traditional financial instruments held by a fund manager or another financial trustee on their behalf, rather than directly holding BTC, according to analysts.
The demand for BTC paper and products like Blockrock Bitcoin ETF led the asset manager to accumulate 3% of the total Bitcoin supply, which raises concerns about centralization among certain market players.
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