Spot Bitcoin ETF Approval Not Sufficient To Trigger Bullish Rally – Experts
The crypto community is anticipating the approval of spot Bitcoin (BTC) exchange-traded fund (ETF), which will likely push Bitcoin prices up. However, some experts opined that more is needed to change investor’s perceptions of the market altogether.
Testing The Waters
The crypto market expressed optimism when Bitcoin experienced its most impressive single-day rally in over a year, gaining more than 14% on October 24. Interestingly, this rise was fueled by the news that BlackRock’s highly anticipated spot Bitcoin ETFs, dubbed IBTC, had secured a spot on the Depository Trust & Clearing Corporation (DTCC) official website.
Hence, the landmark was hailed as a significant step forward in the ETF’s path to regulatory approval. Furthermore, this surge dwarfed the notable uptick of October 16, fueled by inaccurate information indicating the premature approval of spot Bitcoin ETFs.
As a result, investors reacted quickly, capitalizing on the breakthrough presented by the DTCC listing. These events have filled the crypto community with renewed optimism of a bullish run as market participants await further advancements in the regulatory landscape surrounding digital assets.
Crypto Influencer Weighs In On Market Dynamics
Meanwhile, TheFlowHorse, the famous pseudonymous trader with a large following on the X platform, has commented on the recent market dynamics. According to the experienced trader, the recent rise in Bitcoin’s price, fueled by the listing of BlackRock’s spot Bitcoin ETFs on the DTCC website, indicates how the cryptocurrency’s value will react if regulators approve a spot Bitcoin ETF.
TheFlowHorse added that if the ETF is approved, investors may witness a movement of similar or greater value for their portfolio. However, the investor also warned about the possibility of a mid-term retracement following such an approval.
His cautious stance is due to the anticipated influx of eager investors looking to profit from the groundbreaking news.
Analysts Predict 2024 For Bitcoin ETF Approval
Furthermore, JPMorgan analysts led by Nikolaos Panigirtzoglou stated in a recent report that the approval of spot Bitcoin ETFs would likely happen before January 10, 2024. This date is the deadline for Ark Invest and 21Shares applications.
If this forecast is valid, it would be the earliest of the US Securities and Exchange Commission’s (SEC) final deadlines for spot Bitcoin ETF applications. While there is optimism about the approval, Bloomberg ETF experts James Seyffart and Eric Balchunas believe the US regulator would approve one of these applications within the first quarter of 2024 but not by January 2024.
Despite the positive prospects, these analysts warn investors to exercise caution. They explained that the demand for BTC may be temporary due to the current high interest rates and other macroeconomic factors.
The analysts further said the leading digital asset appears less likely to experience a significant price upswing and embark on a long-term bullish trend under the current market environment. They added that higher interest rates may make other investment options more appealing, influencing investors to choose these options over Bitcoin.
Nevertheless, the approval of spot Bitcoin ETFs has been eagerly anticipated, and there’s a chance that the market has already factored this into Bitcoin’s price before it happens. Meanwhile, on-chain data shows that Bitcoin’s year-to-date price has increased by 108% at the time of writing.
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