The much-anticipated approval of the spot Bitcoin (BTC) exchange traded funds (ETFs) in the US finally happened. It didn’t come without a hiccup hours before their announcement though and hopes were dashed as the premier cryptocurrency by market cap went all the way up to $49K only to come crashing back down in the $42K range this weekend. So, the question is, “What now?”
As of press time at 5:00 AM this Saturday, Bitcoin is 6.7% down as it hovers around the $43,830 line on the 24-hour chart. Its trading volume appears to be stale, too, with just a bump of 0.89% within the period as only $44.51 billion worth of BTC moved between wallet addresses. The numbers indicate a volume-to-market cap ratio of 5.31% for the cryptocurrency after it drifted between a low of $41,903 and a high of $46,353 within the period.
The figures are a stark contrast to the ones displayed on Wednesday as optimism ran high for the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs before the eventual official announcement. Unhindered by the hullabaloos caused by the earlier hacking incident, Bitcoin pumped all the way to $49,048 on BitStamp following the historic nod of the regulator.
The torrent of spot Bitcoin ETF transactions in the US immediately brought in $7.6 billion in trading volume in two days. Being the biggest player in this new segment of the market, BlackRock’s CEO Larry Fink primed up the new financial instrument to attract more investors.
“If you’re fearful of your government, or worrying your government is devaluing the currency, then you could see this as a great potential long-term store of value,” said the asset investment management firm’s head honcho in an interview with Fox Business. “It’s like digital gold.”
Popular X (formerly Twitter) crypto personality Ali (@ali_charts) warned that the Bitcoin charts may get uglier in the next four weekly candles before resuming the uptrend. In other words, investors must HODL (Hold On for Dear Life) despite the dip to experience the rip.
Another pseudonymous crypto analyst going by the alias Coin Signals (@CoinSignals_) on the social media platform believes BTC will continue its upward momentum back to the $49K territory because no “Sell” signal exists. It also cites the bearish rant of Jim Cramer, which could turn out to be the opposite by virtue of the Inverse Cramer phenomenon, to spice up its bullish assessment.
Final Thoughts (Not an Investment Advice)
Notwithstanding the technical charts, the stampede of the bulls may be far from over. Amid the underwhelming response of Bitcoin values in the entry of its related spot ETF in the US, we still have the halving coming up, which could further tighten the supply of BTC while driving up its demand.