For the past 48 hours, the news of the approval of the Spot Bitcoin (BTC) ETF permeated the social and financial space. Many think pieces were flying here and there and reports on the meaning of the approval for the entire cryptocurrency industry, specifically on the largest cryptocurrency by market capitalization – bitcoin. Firstly, it was the post on X by the SEC that the spot bitcoin ETF had been approved signaling a new dawn in the industry. But this excitement was soon cut short when the SEC Boss, Gary Gensler posted with his personal X account that the SEC’s X account was compromised. But what impact does the approved spot bitcoin ETF have on the crypto economy and what comes next?
The ETF is good for the crypto market
Contrary to the belief of some, the approval of ETFs in the cryptocurrency industry is seen as a positive development. While there are concerns that it may reduce volatility and eliminate extreme price movements, it is also considered a sign of the market’s maturity. This approval is expected to attract top-tier financial firms and fund managers into the crypto market, leading to a gold rush for investors. Some analysts even predict that bitcoin could reach an all-time high price.
The introduction of ETFs brings new opportunities for investors to participate in the crypto market, providing them with a regulated and accessible avenue to invest in digital assets. With the entry of established financial institutions, there will likely be increased liquidity and stability, making it more appealing to a wider range of investors. The potential for bitcoin to surge to unprecedented levels will generate excitement and optimism among market participants. As the crypto market continues to evolve and gain mainstream acceptance, the approval of ETFs only serves to reinforce its legitimacy and potential for long-term growth.
Don’t expect an immediate pump
There is much anticipation among many people for a potential price surge, or “pump,” in the Bitcoin market. However, it is important to note that this positive movement may not happen immediately. The market’s response to the recent statement from the SEC boss approving the ETFs was not as strong as the initial reaction to the “fake” news circulated through the compromised SEC X handle.
As the ETFs are now being implemented, it is expected that market growth will unfold gradually rather than abruptly. This is primarily because new funds entering the market may be content with smaller gains ranging between 5% and 10%. In contrast, long-time crypto enthusiasts often have higher expectations for returns, which contributes to a slower yet more stable growth trajectory.
Bitcoin will likely see a big pump post-halving & altcoin runs
After a Bitcoin halving event, historical trends indicate that there is typically initial price volatility, followed by short-term increases. This is because the supply of Bitcoin decreases while demand continues to grow, resulting in post-halving peaks and long-term bullish trends.
Additionally, the potential approval of ETFs may attract significant funds into the market, further driving up the price of Bitcoin after the halving. As Bitcoin’s price continues to rise, there is a possibility that altcoins may also experience an upward movement, potentially leading to an altcoin run. When considering these factors together, it creates an optimistic outlook for the cryptocurrency market following the halving.
The conversation will shift to the ETH ETF
Much like the beloved character Oliver Twist, crypto enthusiasts are always yearning for further advancements. With the recent approval of a Bitcoin Exchange-Traded Fund (ETF), attention now turns to seeking approval for an ETF specifically dedicated to Ethereum (ETH). As highlighted by Eric Balchunas, a Bloomberg ETF analyst, the fate of the Ether spot ETF is closely tied to that of Bitcoin spot ETF approval. In essence, the fate of Ethereum closely mirrors that of Bitcoin. The approval of the spot BTC ETF paves the way for numerous exciting opportunities, heightening the appeal of pursuing an ETH ETF even more.
We are likely in a pre-bull run (remember Meta’s (Facebook) Libra & Metaverse announcement?)
The announcement of Libra by Meta, previously known as Facebook, immediately sparked the 2021 bull run. This event ignited interest in various sectors of the crypto space, including DeFi, GameFi, NFTs, and the Metaverse. Consequently, it became the most significant bull run ever witnessed in the cryptocurrency industry. Recently, notable altcoins such as Avalanche, Solana, and meme tokens have experienced substantial price growth, indicating a positive market sentiment.
This positive response comes after a prolonged period of bearish waves, which was followed by the controversial “fake” ETF approval. With the halving event on the horizon, it is expected that this favorable market condition will continue to foster further price appreciation and market growth.
