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Will the Bitcoin ETF live up to its promise?

Not exactly a surprise, but what is surprising is the level of correction. You can even technically talk about a bear market, as the drop is around 20% from the last peak. However, Bitcoin rose again to just above $40,000 at midday.

“Approval of Bitcoin Spot ETF Turns Out to Be a Sell-The-News Eventnotes Simon Peters, analyst at eToro. We are now looking at where the Bitcoin price can find new support and potentially start a new uptrend. » In other words, hope for a bull market is not lost. In addition to at least an ambitious estimate by Cathie Wood, the head of Ark (which launched the ETF), according to which bitcoin could reach a maximum of $1.48 million by 2030, Jaran Mellerud, CEO of mining company Hashlabs “$100,000 by the end of the year”.

Long-term vs. short

So many very uncertain predictions and launched before the correction. They rely on the cycle where the bubble returns every 3-4 years, as well as the increase in demand with ETF marketing in the United States. YCharts notes that since the launch of gold ETFs in 2004, the price of the precious metal has increased by 365%, representing an annual gain of 8.4%. “This does not mean that ETFs inherently drive the value of an asset class. However, given the greater availability and funding that previous spot ETFs have attracted, it is evident that these instruments are attracting more investor interest in the underlying asset. » Way to suggest that the most famous of cryptocurrencies should experience a fate along the same lines, but not necessarily the same. ETFs launched on January 11 have already received more than 100,000 bitcoins.

However, watch out for the reactions of the following hours: “The tendency of short-term investors to react more sharply to market fluctuations suggests that there is a possibility of further correction … in prices with critical support levels at $38,000 and $36,000.”Bitfinex analysts wrote yesterday.

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