Bitcoin ETFs May Not Drive Bull Market, but Can Boost Inflows: Lyn Alden
Macroeconomist Lyn Alden believes that Bitcoin exchange-traded funds (ETFs) will not have an immediate impact on the price of Bitcoin. In an interview, Alden states that while ETFs may not be the driving force behind the next bull market, they could attract more inflows, pushing Bitcoin to higher levels.
Alden suggests that the catalysts for the next Bitcoin price expansion will likely be similar to those seen in previous bull markets. She explains that as liquidity conditions improve and tightly held coins are accumulated by strong hands, a breakout to new all-time highs could trigger increased interest from investors and registered investment advisers (RIAs), leading to inflows into Bitcoin.
Bitcoin is currently valued at $39,972.
Hot Take: Bitcoin ETFs and their Potential Impact
While Bitcoin ETFs may not be the sole driver of a bull market, they can play a significant role in attracting more investment into Bitcoin. According to Lyn Alden, these ETFs could add more magnitude to the upside of a bull market by providing ease of inflow for investors.
Alden emphasizes that the key catalyst for a bull market remains consistent with past trends – improving liquidity conditions and a tightening supply situation. However, once Bitcoin breaks its all-time high, the availability of ETFs can spark increased interest from investors and RIAs who may have been waiting on the sidelines.
In conclusion, while Bitcoin ETFs may not be the primary catalyst for a bull market, they can contribute positively to its growth by attracting more inflows and boosting liquidity.
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