As we stand at the threshold of the cryptocurrency market, we seem to be in a whole new world. The passage of Bitcoin ETFs and the influx of institutional funds have injected unprecedented vitality and change into this market. Big money can now control Bitcoin and its price as never before, which will likely change the nature of the cryptocurrency cycle.
However, this is just the tip of the iceberg. On Thursday last week, a total of 11 ETFs began trading, with first-day trading volume reaching $4.6 billion, a figure that is twice that of gold ETFs!
This makes us wonder whether Bitcoin’s early adopters were always on the right track.
This is definitely a pivotal moment for Bitcoin, and we are entering a whole new chapter for cryptocurrencies. Bitcoin continues to solidify its market leadership and is the undisputed king. However, this new chapter also comes with challenges. The Bitcoin ETF has been a huge success with nearly $10 billion in trading volume in just three days, and everyone has benefited greatly.
Grayscale was finally able to sell, and they did so. GBTC sold more than $500 million worth of Bitcoin in total. Before that, Grayscale could only buy and hold.
Fortunately, other ETFs were net buyers, purchasing a total of $800 million in new Bitcoin, an average of nearly $300 million per day! This is a large portion of the number of Bitcoins circulating in the market every day. Considering that only 900 new BTC are mined every day, this buying pressure may soon be reflected in the price of Bitcoin. In the near future, the mining reward halving event will halve the daily mining reward to 450 BTC (expected on April 23, 2024).
If the number of ETFs continues to trend like this, the supply of Bitcoin will become increasingly scarce. Even if trading volume declines, ETFs represent unprecedented additional demand, and competition will be fierce, attracting ordinary investors, whales, and big players like MicroStrategy's Saylor.
What will be the outcome of all this?
Bitcoin will grow like never before in this cycle, panic buying by institutions will drive Bitcoin to unprecedented heights, and we will witness Bitcoin set new all-time highs.
A lot of money can't buy a bull back. As the year draws to a close, the price of Bitcoin has started to diverge from the daily chart. 40K will be an important test point. It seems that the price of BTC is approaching 40K infinitely. Is 40K the end point of this adjustment?
According to FIB theory, Bitcoin is very likely to reach the price of 40165U corresponding to the upper retracement line of 0.618, and it is not over yet. At the same time, a #CME futures gap was left on December 5, 2023, just touching 39500U.
The price has come, it is a bit regrettable not to test it, and the gap is also a support. The position of 0.618 may be just a coincidence, but it is more driven by the law of market operation. In addition, the bearish divergence pattern of the top of the Bitcoin daily MACD is already very obvious. If you pull it to the 3-day chart level, it is also in a correction trend.
In the short term, at least before the new year, we shouldn't see any new highs, which is just the right reward for all the hard work. From 18,000 points at the beginning of the year to 48,000 points now, it's already very good.
How will it perform in 2024? Which sectors do you think will explode first?
