crypto-capital-inflow-2-years/” rel=”nofollow”>Cryptographic analyst Ali Martínez It recently sparked some thought in the crypto community by highlighting a historical pattern that provides insight into where the price of bitcoin may be headed. This comes as debate continues over whether a potential approval of pending Spot bitcoin ETF applications is bitcoin-etf-approval-sell-the-news-event/” rel=”nofollow”>a 'sell the news' event.
Is history about to repeat itself?
in a mail On his platform If history were to repeat itself, bitcoin's price could drop this month, considering it ended the last four months of 2023 at highs.
The crypto analyst suggested that those bearish Januarys were likely the result of profit-taking, something he warned could happen again based on history. Santiment market intelligence platform recently reported that most bitcoin holders make profits. Therefore, the projection of a profit-taking trend in January is not unreasonable.
This trend seems to have already started in December, as NewsBTC reported that bitcoin-whales-quietly-buy-market-panics-plunge/%5C” rel=”nofollow”>bitcoin whales sold around 50,000 btc worth $2.2 billion. While a bearish January is expected based on history, there is also the argument that those last two years did not have any events as bullish as the bitcoin Spot ETFwhich could be approved as soon as this week.
This argument also leads to another discussion about whether the approval of these funds by the National stock market Commission (SEC) will cause the price of bitcoin to rise or fall. Until now, cryptanalysts have been divided on what is likely to happen. According to certain predictions, bitcoin could rise to as high as $69,000 or crash into only $35,000.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/A-crypto-analyst-says-history-shows-what-could-be-next" alt="bitcoin Price Chart by Tradingview.com (Cryptocurrency Analyst)” width=”3266″ height=”1530″ loading=”lazy”/>
Initial Impact of bitcoin Spot ETFs Overestimated
VanEck's advisor Gabor Gurbacsrecently opined that short-term expectations for a bitcoin Spot ETF are overestimated. Analysts like Galaxy Digital bitcoin-spot-etf-three-years/” rel=”nofollow”>predict that these funds could receive inflows of up to one billion in their first month of launch. However, Gurbacs disagrees, predicting that only a few $100 million would flow into these funds in the short term.
The amount of inflows that could initially enter these funds is significant, considering the impact it could also have on the price of bitcoin. Trading company QCP Capital had predicted that bitcoin could hit its all-time high of $69,000 again if these bitcoin Spot ETFs see enough capital in their first few weeks of trading.
Meanwhile, in the long term, Gurbacs is optimistic about the impact these ETFs will have. He predicts that bitcoin could experience growth similar to what gold enjoyed following the launch of gold ETFs. The market capitalization of gold has grown exponentially since the first gold ETF was launched in 2004. The market capitalization of bitcoin crypto-market-cap/” rel=”nofollow”>could also amount to billions with the help of these bitcoin-etf/” rel=”nofollow”>bitcoin Spot ETF.
Featured image from Inside Bitcoins, chart from Tradingview.com
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