26.01.2024 – The dust has settled on Bitcoin, the hysteria following the major event has faded. And lo and behold: the authorisation for spot ETFs was, at least in the short term, an event blown up by big names and used to sell the news. The case is a lesson for everyone not to be driven by pushers. And how prices can be manipulated.
Dreariness instead of a rally: since 10 January and the approval of exchange-traded funds that are allowed to buy tokens on the spot market, BTC bulls have been disillusioned. The picture shows the daily chart. We had warned of a possible sell the news.
Source: Bernstein Bank GmbH
The new funds are certainly a success: the Bitcoin ETF from asset manager BlackRock is said to have already attracted one billion dollars, while Fidelity’s fund has received around 880 million dollars.
Sell the news
History is repeating itself, as Wirtschaftswoche recently noted: After the approval of futures ETFs on 19 October 2021, things initially went up. But one month after approval, the price had corrected by around 25 per cent.
What a lot of price forecasts there were. Let’s take a quick look back at those who beat their drums the loudest. Although it’s not all evening yet, there is a suspicion that it was precisely these pushers who sold their tokens to excited newcomers.
100,000 to 1,000,000
Adam Back, for example, head of the blockchain company Blockstream, had set a target price of 100,000 dollars – even before the index funds were launched.
The analysts at CryptoQuant have predicted that BTC will exceed the USD 160,000 mark. They also pointed to the upcoming halving and a boost for the stock markets in the wake of future interest rate cuts by the Federal Reserve. In other words, more risk appetite should also boost e-currencies.
Furthermore, Ash Crypto, a trader active on social media, predicted a price of USD 500,000 if the spot ETFs were approved.
Samson Mow, CEO of Jan3, a provider of digital infrastructure, even predicted a possible price of 1 million dollars. This is because the increased demand from institutional investors is offset by a relatively small supply of tokens.
So far, these mega-bulls have been so wrong. But what is not, can still be. Incidentally, BTC has recently been supported by the stock market crisis in the People’s Republic of China. According to Reuters, many Chinese have diverted capital into e-currencies out of fear of a crash. The question is what will happen if Chinese equities stage a sustained rally because Beijing is supporting the financial market. We are therefore curious to see what will happen with cryptos – we will keep you up to date.
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