Day 3 after BTC spot ETF listing; not the market we expected?
Before the approval of the BTC spot ETF by SEC, everyone in the crypto space was expecting a bull run hinging their expectations on the wider adoption of BTC and the asset being in high demand leading to a hike in price. But little did we know that institutional owners and big whales have already transferred a lot of these BTC holdings to their wallets waiting for the listing to sell off for a profit. With Coinbase serving as asset custody for about 90% of listing institution, there was always a pointer that market could dump depending on the activities of whales on the exchange and at this rate the exchange could run out of their BTC reserve if demands and sales continues at this rate tho. That didn't disappoint either as reported BTC sales after 24 hours of BTC spot ETF going live for the approved 11 trading firm, stood at $7B. That alone is enough to cause a major dump in the price of BTC as witnessed yesterday.
Although most analyst are of the opinion that this is expected and that as soon as the volume of ETF trades increases tremendously and demand is on the high, institution will still need to acquire more BTC to seed with their product leading to a spike in price of the asset. Also, with the halving less than 100 days from now, there's belief that supply may dry up and inevitably result in another bull since the buy pressure will be 2-way - one from the ETF offering institutions and from the crypto buyers needing it for other usecases.
But another interesting theory to the drop in price is that analyst are of the view that most BTC holders are shifting funds from BTC to ETH further explaining why the Ethereum ecosystem is buzzing atm with a spike in price to ~$2,700 earlier today. A lot of tokens in the ecosystem have witnessed a price jump especially METIS, ARB and OP.
But all these begs the question, "what is the appropriate action right now?". Some crypto experts are saying trading is the best play rn while some believe it the right time to buy the dip. What is your take?
IMAGE was taken from google search
THIS POST IS PLAGIARISM FREE
Dear @bashjasper
Good read buddy,
From the moment when ETF has been approved it has been clear to me that amount of market manipulation within crypto space will reach all time high right now.
Most people seem to believed that approving all those ETF applications will result with increasing demand for bitcoin. I see it differently. In my opinion all those big institutions will take time to accumulate BTC and will use their influence and resources to keep crashing the market during that accumulation period. I think it does make sense and should be easy to understand.
I've read theories that recent dump was nothing more than 'buy the rumour and sell the news'. I disagree with that as well. That dump that took place recently (from 46k to 42k) does not look to me like it has been "organic" at all. I consider it nothing more than market manipulation and we all shall get used to it. Big boys will shake crypto market very often and by doing so they will move BTC from hands of regular investors to their own hands.
Perhaps we could see sell-the-news scenario happening if we could also witness solid PUMP right before ETF approval. But that did not really happen.
In long term I believe that price of BTC will reach some crazy levels. Most likely, once big boys will be done with accumulating then they will use influence and resources to pump it.
Just my own 2 cents,
Yours,
Piotr
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