Bitcoin

Don’t expect quick gains just because of spot Bitcoin ETFs

Published

9 months ago

11 May, 2024

Don’t expect quick gains solely because of spot Bitcoin ETFs

Disclosure: The opinions and views expressed here belong solely to the author and do not represent the views and opinions of the crypto.news editorial.

If we were to judge the immediate effects of SEC approval 11 Bitcoin ETFs in Spot in January, as an indicator of its long-term price response, HODLers would likely have been disappointed with just a 6% price increase in just over a month. While the approvals brought a new wave of positive attention and robust institutional activity in the crypto market, the instant price jump everyone predicted failed to materialize.

Of course, now we are witnessing Bitcoin rises to record prices and the beginning of a full-scale bull market unfolding right before our eyes. With major asset managers like BlackRock and Fidelity bringing crypto to their clients, the attention was worth it, even if it stalled momentarily early on.

But are ETFs the only reason for BTC’s significant price jump? Yes, the convenience of ETFs has unlocked new demand, but it is delaying the real adoption of BTC as a sovereign store of value.

What the ETF approvals brought to the industry was a revitalized sense of confidence in the crypto market after a harrowing crypto winter. We can attribute this renewal to the safer membership of trusted financial institutions and them guiding the way to wider adoption.

The more professional image is truly welcome and lays out a clear roadmap for how large institutions and the general public can incorporate cryptography and other facets of blockchain technology without completely reorienting their financial reality.

While this risks creating a situation where the majority of BTC is held in spot ETFs, thus consolidating a decentralized financial instrument within the confines of traditional, centralized control – the odds of this happening are greatly reduced as of now. .

It is also inaccurate to say that ETFs are the only contributors to the bullish momentum the crypto market finds itself in today. Although they probably play an important role thanks to all their contributions, both monetary and in terms of image, it is reductive to say that other factors are not at play here.

Bitcoin ETFs play a dual role, bringing attention and funds to BTC itself and also sharing the spotlight with other industry sectors.

The bear market helped facilitate a critical push for crypto projects to step away from the spotlight and focus on rebuilding and developing products that could withstand any type of regulatory, technological, or institutional scrutiny. Ignoring the advances that creative projects have made in infrastructure and that are now contributing to this renaissance would be harmful.

In fact, many of these developments would not be possible if they were not explicitly due to the immense advances made in the blockchain ecosystem. While many blockchain builders were aware of the need to build a framework that would enable sustainable growth, it took a while to see this come to fruition.

Now, blockchain infrastructure is the cornerstone of the ecosystem’s growth. Only since the beginning of 2024, infrastructure projects created about $800 million in equity financing, and last year recorded more than $1.1 billion in the same quarter. While this year’s numbers represent a decline, they show how proactive financing in these infrastructure projects is now bearing fruit through institutional interest.

Likewise, the rapid development of layer 2 projects for Bitcoin has also planted the seeds of scalability. And that’s before even diving into the weight pulled by the Ethereum ecosystem and several other altcoins that are also witnessing a surge in activity and development. Think about where industry and development would be without something as instrumental as, say, zero-knowledge rollups (zk-rollups) or other scaling technologies.

In such a short period, it is difficult to say whether ETFs are responsible for the market turnaround we have witnessed. Did they draw attention to developments that would have happened regardless, even if the ETFs were rejected? Or did they trigger advancement beyond what the industry could have imagined of its own volition?

Bitcoin ETFs will add value to the broader crypto ecosystem and promote adoption by giving the industry a more professional image – which will compel retail investors to learn and understand the asset class over time. Even with the recent negative net inflows of BTC ETF activity, the outlook remains extremely positive on the effect these advancements and more will bring to the space.

Yes, we can probably expect more price swings, and it would be wrong for HODLers to assume they will make quick gains just because of ETFs. But what they achieve is creating a new foundational pillar for institutional attention and investment that will ultimately bolster Bitcoin and all cryptocurrencies in the long term.

James Wo

James Woan experienced entrepreneur and investor in the crypto space, established DFG in 2015. Currently manages a portfolio of over one billion dollars in assets. With a background as an early investor, James has backed companies such as LedgerX, Ledger, Coinlist, Circle, and ChainSafe. Additionally, he was an early investor and supporter of protocols such as Bitcoin, Ethereum, and Polkadot.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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