February 1, 2023

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Analysts: Bitcoin ETFs Totally Changed Market Structure - BTC Direct

Analysts: Bitcoin ETFs Totally Changed Market Structure – BTC Direct

Lots of noise surrounding Bitcoin price The past few weeks were about to launch the first Bitcoin futures ETFs in the US. For years, analysts have argued that the emergence of these investment products will give a new segment of investors access to bitcoin. Many institutional investors who were previously unable to invest in bitcoin now have the opportunity to do so.

Now that two futures-based ETFs have already been launched, a real arms race has begun among the providers to get their Bitcoin ETF into the market as quickly as possible. This includes recordings from Valkyrie and Direxion. Valkyrie wants to launch a Bitcoin ETF with 1.25x leverage and Direxion which is an ETF that gives the market an opportunity to short Bitcoin.

The launch of ETFs changed the market forever

According to Ben Lilly, market analyst and co-founder of Jarvis Labs, the arrival of these ETFs has “completely changed the structure of the market.” More importantly, according to Lilly, more capital is now pouring into various forms of exposure to bitcoin. A process that, he says, takes time and in the long run guarantees low volatility in the market. Which is good for bitcoin, as this has been a major criticism point of the digital currency over the years.

After all, the great ambition of Bitcoin is to serve as a currency for the entire world. Something that doesn’t work if we’re still making huge price swings on a daily basis. This is not a problem for people who save in bitcoin and see the currency as a piggy bank or a long-term investment. But for people who use bitcoin to run their business and can’t handle this volatility.

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The coming months should show the ultimate impact of the launch of the first US Bitcoin futures ETFs on the market. Right now, we’ve seen an uptick due to the hype surrounding popular investment products, but there hasn’t been a real price explosion yet. At least if we take the previous height at all as a criterion. Given the strong resistance around the current price level, not everyone is convinced that we will continue higher.

Fierce fight between bulls and bears

After a brief rally in the price of bitcoin in the run-up to the launch of the first bitcoin futures ETFs in the US, there is now a huge battle between the bulls and the bears. Many analysts are now holding back when it comes to extreme price predictions. David Lifchitz of ExoAlpha is closely watching the $58,000 (€49,800) and $53,000 (45,800) levels anyway as potential moments to buy more.

According to him, the next resistance on the way up is $63,000 (€54,180), a price level we have been dancing around in recent days. Analyst Ryan Canttering Clark says he is currently “completely out of bitcoin”. His focus is also on the $58,000 support level, which appears to be an important line of defense for Bitcoin.

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At the moment, bitcoin appears to be holding its strength reasonably well around the $60,000 (€51,600) level, as bitcoins are being bought with every significant volume pullback. This could refer to institutional investors using each price drop to expand their bitcoin stock. something too savior I did.