{"id":13897,"date":"2023-11-02T07:29:24","date_gmt":"2023-11-02T07:29:24","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=13897"},"modified":"2023-11-02T07:29:25","modified_gmt":"2023-11-02T07:29:25","slug":"spot-etf-induced-bitcoin-rally-isnt-guaranteed-to-stick-analysts","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=13897","title":{"rendered":"Spot ETF-induced Bitcoin rally isn\u2019t guaranteed to stick: Analysts"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>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\u2019t be enough to fully thaw the markets from its winter chill.\u00a0<\/p>\n<p>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\u2019s spot Bitcoin ETF \u2014 IBTC \u2014 had been listed on the Depository Trust &amp; Clearing Corporation (DTCC) website, something markets understood as a positive step forward for the funds\u2019 application. <\/p>\n<p>The surge turned out to be even stronger than that of oOct. 16, when Cointelegraph\u2019s incorrect tweet that suggested a spot Bitcoin ETF had been approved.<\/p>\n<p>Speaking to Cointelegraph, pseudonymous trader TheFlowHorse \u2014 who boasts 184,000 followers on X \u2014 said that the two market blips can be seen as a hint of Bitcoin\u2019s price action should a spot Bitcoin ETF be approved.<\/p>\n<p>Addressing the two developments and its impact on Bitcoin,Horse added that investors could expect to see a move of \u201cthe same, if not greater magnitude\u201d if the ETF is approved.<\/p>\n<p><em>The price of Bitcoin surged to north of $35k on Oct. 24. Source: TradingView<\/em><\/p>\n<p>However, Horse notes that while approval will likely drive prices significantlyupward, it\u2019s also likely it will be followed by an eventual retrace in the mid-term. <\/p>\n<p>This is because, in Horses\u2019 view, the trade will be crowded heavily by eager investors looking to chase the news. <\/p>\n<p>\u201cYou&#8217;re going to have a ton of crowding\u2026 and that&#8217;s ultimately an inefficient move. The inefficient moves get refilled and retrace to some degree,\u201d he added.<\/p>\n<p>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 BTC Markets, said the approval of BlackRock\u2019s ETF will act as a catalyst for the rest of the traditional finance sector. <\/p>\n<p>\u201cThis participation not only amplifies institutional capital inflows but also heightens retail curiosity, contributes to supply limitations, and underscores the deflationary aspect of Bitcoin.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Here&#8217;s a short clip of @kaileyleinz asking Gensler about $GBTC and other spot #Bitcoin ETFs. Mostly non-answers in my opinion but does talk about the disclosure review team. We&#8217;ve had some insight into their process via the amendments from some of these filers in recent days pic.twitter.com\/lIWZc74OAi<\/p>\n<p>\u2014 James Seyffart (@JSeyff) October 18, 2023<\/p>\n<p>However, while Sycamore said there\u2019s a chance the \u201crally could stick\u201d \u2014 a full-scale trend reversal for Bitcoin seems unlikely given that interest rates remain considerably higher than they were when Bitcoin notched its previous all-time-high. <\/p>\n<p>Tina Teng, an analyst at CMC markets also believes it would be worthwhile to adopt a more cautious stance, as there\u2019s no guarantee of an all-out trend reversal. <\/p>\n<p>\u201cBitcoin still lacks the fundamentals to support a quantitative valuation like shares and does not have the scope of utilization like commodities. Approval by the SEC can not change the nature of it being a speculative asset.\u201d<\/p>\n<p>\u201cMacro changes will have a major impact on the crypto markets, which usually start building an upside trend during a Fed rate cut cycle,\u201d Teng concluded. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Grayscale files for new spot Bitcoin ETF on NYSE Arca<\/em><\/strong><\/p>\n<p>The certainty and timing of a spot Bitcoin ETF approval is still up for debate. While unlikely, ETF analysts said that SEC Chair Gary Gensler could be waiting until the very last minute to pull off an \u201camazingly sadistic\u201d denial of the impending applications.<\/p>\n<p>While analysts from JP Morgan claimed in an Oct. 17 investment note that an approval could arrive within the next few months, the general consensus \u2014 held by Bloomberg ETF analysts James Seyffart and Eric Balchunas \u2014 peg the chances of an approval by Jan. 10 next year at 90%.<\/p>\n<p lang=\"en\" dir=\"ltr\">I&#8217;ve gotten a lot of questions regarding my current view on Spot #Bitcoin ETFs over the last couple weeks. This is the first section of the note I put out yesterday with @EricBalchunas.<\/p>\n<p>TLDR: Our view hasn&#8217;t changed much https:\/\/t.co\/dRAm5IsdQf pic.twitter.com\/Htsi3n2XxV<\/p>\n<p>\u2014 James Seyffart (@JSeyff) October 13, 2023<\/p>\n<p><strong><em>Magazine: <\/em><\/strong><strong><em>How to protect your crypto in a volatile market \u2014 Bitcoin OGs and experts weigh in<\/em><\/strong><\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/spot-etf-bitcoin-rally-may-not-sustain-analysts\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019t be enough to fully thaw the markets from its winter chill.\u00a0 On Oct. 24 Bitcoin staged its largest single day rally in over a year, surging more than 14% on the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13898,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-13897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13897"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13897\/revisions"}],"predecessor-version":[{"id":13899,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13897\/revisions\/13899"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/13898"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}