The cryptocurrencies They still don’t react. Bitcoin struggles to stay above the $40,000 line, while Ethereum moves lower below $2,500. From the approval of exchange traded funds (ETF) of BTC the market is uncertain, so much so that in a matter of hours The market capitalization of space has decreased by $50 billion.
Despite this week’s falls, some analysts believe that if Bitcoin endures this stage, it could resume its upward path and even reach higher values.
The bitcoiners’ debate: was the ETF announcement a failure?
The debate in the space of digital assets now focuses on whether spot exchange traded funds have been a failure or whether we have to wait a little longer to see their potential positive effects.
Bloomberg ETF analyst Eric Balchunas believes they are, without a doubt, a resounding success, since these investment products have achieved a trading volume of 10 billion dollars in the first 3 days of listing. According to Balchunas, 500 ETFs were launched in 2023, which together barely reached a volume of $450 million throughout the year.
Likewise, other experts point out that these products have achieved net income of around 21,000 BTC in the first three days complete negotiations, an amount that amounts to just over 900 million dollars at current market prices.
He iShares Bitcoin Trust (IBIT) BlackRock’s tops the list with 16,362 bitcoins, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC), with 12,112 bitcoins. On the contrary, at the head of the exits we find the Grayscale Bitcoin Trust (GBTC), which has lost about 25,000 bitcoins in this time, largely due to the discount with which its securities were quoted and the high management fee imposed by Grayscale itself compared to that of other competitors such as BlackRock.
The bitcoiners debate: the most bearish
On the contrary, the analysts in favor of the most bearish theses They point to the weak price evolution since its launch, the large sales of GBTC and the first net inflows that, although considerable, have not reached some bullish forecasts of billions. According to these analysts, the bitcoin must start changing course soon if it wants to meet the expectations of reaching $50,000 and attacking its all-time highs of $65,000; Otherwise, they add, the king crypto asset could fall to $32,000.
For his part, Jurrien Timmer, director of global macroeconomics at Fidelity, doesn’t expect sales to continue for much longer. According to this expert, the current trends in the price of bitcoin suggest a short-term positioning adjustment rather than a long-term trend change, so he expects a consolidation of the gains achieved in the last weeks of 2023 before resuming the trend. bullish climb.
“The short-term question is whether this is a selling moment. My guess is that it will take a little time to consolidate recent gains, now that the big moment has arrived. There were more than a few participants who matched spot future positions through the futures market or bitcoin-sensitive stocks,” he explained on his X (former Twitter) account.
Source: Ambito
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