The ‘altcoins’ also turn red at this time. XRP and Dogecoin (DOGE) lost just over 1%, while solana (SOL), Cardano (ADA) or Avalanche (AVAX) lost more than 3%. binance Coin (BNB) Also Falls Moderately After Hitting 16-Month Highspecifically since the collapse of FTX, and has helped alleviate concerns surrounding the world’s largest crypto exchange.
The market focus remains on BTC spot exchange-traded funds (ETFs), although interest appears to have waned in recent days after several weeks of rising.
And analysts point out that this Wednesday has been the day in which the smallest inflows have been recorded since the first week of February, since the 10 large funds attracted only about 250 net bitcoins, about 25.5 million dollars; On February 6, the funds experienced net outflows of about $100 million.
Bitcoin: what the market foresees
Likewise, JP Morgan analysts argued that the correlation between entry and exit movements in the funds and the latest rallies in Bitcoin has reduced. According to the New York firm, the correlation between both assets fell to 0.6 points this Wednesday, well below the 0.78 points on February 7 or the 0.84 on January 31; According to JP Morgan, a reading equal to or greater than 0.7 points establishes a “high” correlation, while one below this mark establishes a “moderate” correlation.
In addition, JP Morgan emphasizes that the latest price increases have been driven by retail investorswhich have intensified their purchases of bitcoin tokens in the face of the proximity of important catalysts such as the ‘halving’ or reward halving scheduled for April and a possible approval of the ETH ETF.
According to JPMorgan, the ‘halving’ and the positive effects of Bitcoin ETFs are already priced in, while the bank barely sees a 50% chance that the Securities and Exchange Commission (SEC) will approve the funds Ethereum before the end of May.
Historically, halvings have coincided with bullish cycles in the months before and after their completion. A year after the first halving, bitcoin went from $12 to almost $1,000. After the second, it rebounded to $2,550. With the third, Bitcoin was trading at $8,700 and reached a high of $19,700 in December 2020. And this one, it could be similar.
Regarding Ethereum ETFs, firms such as Bernstein or analysts such as Eric Balchunas, from Bloomberg, are more optimistic and believe that it is difficult for the SEC not to authorize the listing of these investment products. It is worth remembering that the regulator postponed its decision on spot ETFs presented by a series of companies at the end of January. The SEC has a total period of 240 days to respond to these types of requests, which include important names such as BlackRock, Grayscale, VanEck or Fidelity, among others.
Source: Ambito
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