EFFECTS OF THE SPOTS BTC ETFS APPROVAL
The Sec has gone ahead to approve 11 spot BTC ETFs, including Bitwise, ARK 21Shares, Fidelity, Wisdomtree, Invesco Galaxy, Valkyrie, BlackRock (the most popular), VanEck, Franklin, Hashdex and Greyscale.
I know many people who really do not understand the whole Spot BTC ETFs concept and what effects they have on the market.
I will be explaining its effects on the crypto market using two basic analysis.
Fundamentals:
Putting it all together, a BTC spot ETF is an investment fund traded on a stock exchange that aims to track the current market price of Bitcoin. It allows investors to buy and sell shares of the ETF, providing them with a way to gain exposure to Bitcoin without needing to directly hold and manage the cryptocurrency. The term "spot" emphasizes that the ETF is designed to reflect the immediate market price rather than using derivative instruments or futures contracts.
From the above information, there will be more manipulative avenues for Bitcoin prices because a lot of factors will now influence the assetâs priceâŠ
Price of Bitcoin will stay under $45k for a considerable amount of time (3 months minimum) until the regulatory bodies succeed to gather enough liquidity to beat the $48k strong resistance level and take it to a new supply zoneâŠ
We might see lower prices for Bitcoin due to the ETF approvalâŠ.
Technicals:
Altcoins already made a massive drop last week and is accumulating price liquidity and momentum to beat the total altcoins market cap of $842 Billion.
The chart below shows that altcoins market cap will get to $820 Billion before taking off to a new High
