Is the Era of Big Bitcoin Price Surges Over?
Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, believes that the era of substantial Bitcoin price surges might be coming to an end. Here are the key points:
- Decreasing volatility in Bitcoin suggests reduced risks associated with the cryptocurrency as it enters the mainstream.
- Mainstreaming process might limit Bitcoin’s potential for significant price hikes.
- Bloomberg research report shows declining volatility for both Bitcoin and the stock index since Q1, indicating the cryptocurrency’s maturation.
- Bitcoin’s emerging role as “digital gold” is evident, but its volatility suggests room for stabilization.
- Bitcoin’s risk was approximately ten times higher than gold in 2018, but now it is only three times higher.
Potential Debut of Ether-Futures ETFs Draws Attention
The potential debut of Ether-futures ETFs in the US has caught the eye of investors. Here are the key points:
- Companies like Bitwise, Volatility Shares, and ProShares are filing for Ether futures-based exchange-traded funds.
- Some filings even suggest combined Bitcoin-Ether-futures offerings.
- Volatility Shares plans to launch its Ether Strategy ETF on October 12 under the ticker ETHU.
Cryptocurrency Market’s Response and Investor Shift
The broader cryptocurrency market has responded tepidly to these developments. Here are the key points:
- Bitcoin’s price has stagnated at around $29,000 since July and August.
- Ether has declined by about 6% since the month’s onset.
- Both tokens currently trade at nearly half their peak values.
- Ben Johnson of Morningstar Inc. suggests that mass interest and adoption of cryptocurrencies may have reached its zenith.
- Todd Rosenbluth of VettaFi indicates a possible investor shift towards stock-centric ETFs over crypto-focused ones.
Hot Take
The decreasing volatility in Bitcoin and the tepid response from the broader cryptocurrency market suggest that the era of big Bitcoin price surges might be over. As Bitcoin enters the mainstream, its potential for significant price hikes may be limited. However, the potential debut of Ether-futures ETFs shows that there is still interest in the cryptocurrency market. Overall, it seems that the cryptocurrency market is maturing, and investors may be shifting their focus towards more traditional investment options.
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