Spot ETF-induced Bitcoin rally isn’t guaranteed to stick: Analysts
While the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) will likely spike the price of Bitcoin, some analysts are concerned it won’t be enough to fully thaw the markets from its winter chill.
On Oct. 24 Bitcoin staged its largest single day rally in over a year, surging more than 14% on the news that the ticker of BlackRock’s spot Bitcoin ETF — IBTC — had been listed on the Depository Trust & Clearing Corporation (DTCC) website, something markets understood as a positive step forward for the funds’ application.
The surge turned out to be even stronger than that of oOct. 16, when Cointelegraph’s incorrect tweet that suggested a spot Bitcoin ETF had been approved.
Speaking to Cointelegraph, pseudonymous trader TheFlowHorse — who boasts 184,000 followers on X — said that the two market blips can be seen as a hint of Bitcoin’s price action should a spot Bitcoin ETF be approved.
Addressing the two developments and its impact on Bitcoin,Horse added that investors could expect to see a move of “the same, if not greater magnitude” if the ETF is approved.
However, Horse notes that while approval will likely drive prices significantlyupward, it’s also likely it will be followed by an eventual retrace in the mid-term.
This is because, in Horses’ view, the trade will be crowded heavily by eager investors looking to chase the news.
“You're going to have a ton of crowding… and that's ultimately an inefficient move. The inefficient moves get refilled and retrace to some degree,” he added.
Tony Sycamore, an analyst at IG international, told Cointelegraph that he expects to see Bitcoin continue to surge through new yearly highs on the day of the announcement, while Rachel Lucas, a technical analyst at Australian crypto exchange
Read more on cointelegraph.com
