Bitcoin suffers a correction and falls 3% after hitting all-time highs

Bitcoin suffers a correction and falls 3% after hitting all-time highs

After the fund’s debut, analysts say that large investors will change their behavior because they “probably want to see what liquidity looks like when bitcoin falls back aggressively, as it will at some point, “said Jeffrey Halley, an analyst at Oanda. Second, as ‘Reuters’ rightly observed, the Bitcoin futures markets operate on a contango curve. That is, the longest duration contracts. they are more expensive than the previous month. That means you lose money moving contracts that expire to the new entry month. They probably “want to see more ordering with decent two-way liquidity and more superficial contango,” Halley boasts.

For this reason, the spot market for cryptocurrencies has not experienced an abrupt prolongation of the rally of more than 40% that accumulated in October. Rather, it has continued to approach record highs.

“The approval of a Bitcoin ETF certainly further boosts the credibility of bitcoin as a global investment. However, being futures-based will not directly increase the demand for Bitcoin itself and, in fact, there is a real possibility that the launch is bearish for the cryptocurrency in the short term like what happened in 2017 when the futures of the most traded of the ‘cryptos’ were launched for the first time on the Chicago Mercantile Exchange “, comments Antony Portno, founder of Traders of Crypto . The crypto asset touched $ 20,000 after a 2,000% rise in the previous two months. But then a bear market broke out that lasted for a year.

In the meantime, today it was known that eThe Bitcoin ETF introduced by Valkyrie could be launched this Wednesday, October 20, and the one by VanEck, whose launch is scheduled for next Monday, October 25. 16 bitcoin ETF applications are pending decision, on which the US Securities and Exchange Commission has yet to comment.

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