Bitcoin ETF Hype Fading and Investors Taking Profits
According to YouTube analyst Crypto Banter, the hype around Bitcoin ETFs is starting to fade, prompting investors to begin cashing out. Spot Bitcoin ETFs traded at a total volume of $4.6 billion, with Grayscale (GBTC) leading the way. However, upon closer examination of the data, it is revealed that GBTC sales were driven by higher fees and the majority of “old Bitcoin” being locked up. This means that there were almost zero new inflows, which could result in a market scare and sell-off.
Technical Analysis and Fundamentals Pointing to a Local Top
The analyst notes that both technical analysis and fundamentals are currently aligned, indicating a potential local top. One of the factors contributing to this is the launch of CME Bitcoin Futures. However, Crypto Banter suggests that this sentiment does not indicate a cycle top or the end of the bull run. Nonetheless, investors are advised to pay attention to early signs of a pullback, such as Bitcoin’s daily candle close.
Bitcoin Halving and Potential Pullbacks
The analyst highlights that the upcoming Bitcoin halving is expected to increase demand and price for the cryptocurrency. With the countdown at 96 days, the analyst argues that minor pullbacks in the market are actually significant corrections of 40%. Although a 40% correction is not predicted, a pullback ranging from 20% to a maximum of 30% is considered possible.
Hot Take: Bitcoin ETF Hype Fades But Bull Run Continues
While the excitement surrounding Bitcoin ETFs may be diminishing, it does not signify the end of the bull run. The data shows minimal new inflows into GBTC, suggesting that a market scare and sell-off are unlikely. Technical analysis and fundamentals indicate the possibility of a local top, but this does not indicate the end of the overall upward trend. With the Bitcoin halving approaching, demand and price for the cryptocurrency are expected to increase. While pullbacks are possible, the analyst does not anticipate a significant correction of 40%.
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