In the long run, the approval of Ethereum ETF will definitely be a positive development for the entire altcoin market. The following views are all extended after the landing of Grayscale ETH.
First of all, we need to understand the groups of people who own Ethereum.
First of all, many of them are those who survived from the previous thin layer and benefited from the increase of Ethereum, or they benefited from the dividends of the old DeFi. These people are more speculative. When they see the rise of Ethereum, they will definitely get a lot of information, so their thoughts will change to invest in altcoins to get greater returns!
Of course, there are not only retail investors, but the main force will push the situation that retail investors hope for. When everyone makes money, they will push the level higher!
At this point, some brothers may say that the approval of BTC ETH is not beneficial to the altcoin market. It seems that the altcoins actually performed well from October last year to April this year. It’s just that the recent capital reflux bubble has been compressed!
In addition, most of the investors of BTC are institutions and large investors. They don’t need to make profits through altcoins, so it is unlikely that they will use the new wealth profits brought by the rise in BTC prices to invest in other altcoins.
In fact, BTC has not reached a new high in the true sense. The high point is just a little higher than the high point of the previous bull market. In fact, this cannot ignite market sentiment in a sense.
Looking back, it is really hard to say. First of all, the interest rate cut on the capital side and then the flow of the president, if BTC can pull out a new high in the true sense, the market sentiment will be easily ignited. Combined with the continuous inflow of funds from Ethereum, it is difficult for the market not to prosper.
After the passage mentioned above, the real money and silver will flow in. If water is constantly added to the pool, the water level will not get lower and lower. Then the positive cycle after self-reinforcement is like a fountain. The water is still the same water that will not be lost through the cycle, and it is added from time to time!
If all of the above are established, then it will definitely increase the activity on the chain to a great extent. The activity on the chain will undoubtedly increase the pledge and destruction, and the total amount will decrease while the value will increase.
