It is quite difficult to accurately predict how the market will behave. With the recent approval of a Bitcoin ETF, we saw a significant increase in price for most cryptocurrencies, including the main one, BTC. However, this did not last long and the price dropped from $48,500 to the current $42K. What caught attention was that during this price drop, Ethereum began to rise due to rumors about a spot ETH ETF.
Hans Eiskonen
I think there is no need to mention the fact that trends have an impact on existing cryptocurrencies. We saw this last time with the official SEC Twitter account being compromised and releasing a misleading post. However, with Ethereum, we are noticing that these approval mechanisms are being delayed. For example, the closest one has a request from Grayscale to be decided by January 25 of this year.
In this context, it is logical to think that the repercussions on the price movement and market of Bitcoin should be analyzed first in order to make considerations regarding an Ethereum Spot ETF. From this perspective, TD Cowen, an investment bank, predicts that the regulatory body could postpone approval after gaining knowledge and experience from the already approved ETFs.
Volatility vs. income flow
In my opinion, there is still much to be done for Bitcoin's price to consolidate in a way that its increase is not solely based on trends or rumors. The flow of money from ETFs will gradually occur as more investors begin to choose where to invest in this technology. Let's imagine that price volatility can influence the decision of many people with significant capital seeking investment opportunities.
Kanchanara | Unsplash
I do not doubt for a moment that in the future there will be a greater number of investors willing to choose Bitcoin as a way to grow their savings. But injecting a large amount of money corresponds to an important decision, and I believe that the foundations to choose that have not been laid out yet. By this, I am referring to the fact that millions of dollars are still at stake, which could flow towards BTC or not depending on whether a trend is negative. The important thing lies in sustainable growth, which must be truly healthy for the future of cryptocurrencies in general.
Scott Melker, a crypto investor, mentions that Gary Gensler is resistant to accepting an Ethereum ETF unless there is some pressure from the courts. On the other hand, Panigirtzoglou, who is the managing director of JP Morgan, believes there is a 50% chance that the US Securities and Exchange Commission will approve this ETF before the May deadline. In contrast, Bloomberg analyst Eric Balchunas estimates that the probability is closer to 70%.
Despite Bitcoin going through a period of neutrality, altcoins are in a moment that could be considered independent from the day of the highest volatility, during which there was a significant increase in the price of most major coins, some exceeding 43.4% in a 7-day range, such as $TIA from Celestia's modular blockchain, as seen on CoinGecko.
Investing in Altcoins
As average investors, I believe the best option we have is to bet on the most popular altcoins that have not yet had the momentum they deserve; and there are some. One begins to question when it was that they did not make a decision and why they let it slip away, seeing that everything was heading towards solid ground and confrontation. Investing in altcoins could mean a good opportunity from any point of view, especially considering the growth potential that a blockchain might have, where there is a community willing to elevate that momentum.
Traxer | Unsplash
The bull run will come this year, but for that to happen, a sort of long-term sustainability needs to be created. In the short term, we can take advantage of the situation, continue to create anticipation, but if there is no direct catalyst that causes the price to rise for a strong enough reason to surpass the $50,000 barrier, then we are still not prepared to put Bitcoin on a pedestal.
- Information consulted in: newsbtc.com.
- Content translated from Spanish to English with Hive Translator by
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