Does fake news about Bitcoin ETFs indicate Bitcoin's future performance?
Reports of false Bitcoin spot ETF approvals have affected Bitcoin price volatility and also raised concerns among market observers. False reports claiming that the U.S. Securities and Exchange Commission (SEC) had approved a spot Bitcoin ETF proposal put forward by BlackRock caused the price of Bitcoin to rise by about 7% to around $30,000 in a matter of minutes. However, once it was confirmed that the SEC did not actually approve the product, the price of Bitcoin quickly fell back, falling to $28,450 as of 3 p.m. on Wednesday.
The false report is just a preliminary reaction, and the SEC's actual approval could trigger a larger price increase. They believe that the market has not yet fully priced in, so the price may continue to rise when it is actually approved.
Joel Kruger, market strategist at LMAX Group, said that the spot Bitcoin ETF is expected to attract large-scale institutional adoption, and he expects the price to exceed $42,000. Due to the scarcity of Bitcoin, he believes this will trigger a multi-month price rally, retest and break through the all-time high, especially after the Bitcoin price reached an all-time high of about $69,000 in November 2021.
In summary, the false report caused short-term volatility in the price of Bitcoin, but a real SEC approval could trigger a larger price increase. There is a strong demand for Bitcoin ETFs in the market, especially from institutional investors and enterprises, which will bring more capital and trading volume to the market. Although Grayscale Investments has won, the market is still waiting for formal approval. The discount of GBTC shares has gradually narrowed, which shows that investors have high expectations for ETFs. Once these products are approved, there will be a large influx of capital and trading volume.
