Bitcoin Prices May Retest Lower Support as ETF Hype Fades
An analysis report from Matrixport Research suggests that Bitcoin prices could retest lower support levels between $36,000 and $38,000 if the hype around ETFs diminishes. However, this presents a buying opportunity for investors, according to Markus Thielen, Head of Research at Matrixport.
“Sub-38,000, the ETF hype might be completely priced out and Bitcoin goes back to the tunes of macro and liquidity. We would use any further dip to start buying again.”
Bitcoin Selling Pressure Increases
If a correction occurs, Bitcoin prices could drop by around 26% or possibly as much as 30%, sending them back to the $34K level before resuming an uptrend. Additionally, the launch of spot Bitcoin ETFs has been disappointing so far, with low demand and declining trading volumes.
“It is apparent after two weeks of Bitcoin ETF trading. Institutional investors (and the so-called Boomers) are not biting. Registered Investment Advisors (RIA) have yet to be ready to sell this product. Inflows disappoint, and trading volumes are falling off a cliff.”
Grayscale has been selling BTC since the launch of rival ETFs on Jan. 11, having offloaded 106,575 BTC worth around $4.27 billion this month.
Hot Take: Bitcoin’s Future Amidst ETF Hype Fade
The fading hype around Bitcoin ETFs may lead to a retest of lower support levels for Bitcoin prices. This could result in a significant correction in prices but also presents a buying opportunity for investors. However, the launch of spot Bitcoin ETFs has been underwhelming so far, with low demand and declining trading volumes. It remains to be seen how Bitcoin will fare in the face of these challenges and whether institutional investors will eventually embrace ETFs. In the meantime, Grayscale continues to offload BTC as rival ETFs gain traction in the market.
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