Will ETFs and sovereign wealth funds drive bitcoin’s climb?
As Bitcoin continues to draw the interest of investors and analysts, the factors driving its price movements are a frequent subject of debate. Recently, Roundtable anchor Rob Nelson and Rebecca Chow, Head of Investment Research at ViaBTC Capital, explored the elements affecting Bitcoin's path and the wider cryptocurrency market.
Nelson began the discussion by emphasizing the positive signs for Bitcoin. He mentioned that growing retail acceptance, more investment advisors supporting crypto, and the emergence of ETFs create a supportive environment for Bitcoin's price rise. Nelson also highlighted the possible participation of sovereign wealth funds, further boosting optimism.
However, Rebecca Chow offered a nuanced perspective, highlighting the complexities within the crypto market. While Bitcoin remains the dominant force, Chow noted that Ethereum's lagging performance and the overall lack of bullish news could dampen the market's momentum. She stressed the need for fresh, positive developments to invigorate the market and bridge existing gaps.
Nelson further examined the supply and demand dynamics, questioning whether Bitcoin and the broader crypto market could defy traditional economic patterns. He suggested that, theoretically, increasing demand and finite supply should drive Bitcoin's price upward. However, he acknowledged the unpredictable nature of crypto markets, where price movements might not always align with these fundamentals.