Back on October 19, the first Bitcoin (BTC) ETF started trading on Wall Street, dubbed ProShares Bitcoin Strategy (BITO). The fund saw $1 billion in trading volume, while Bitcoin reached an all-time high of $67,000 in its first day.
Nevertheless, the spot gains reversed not long thereafter, and by Saturday, Bitcoin‘s price had fallen as low as $60,000, thus raising concerns about a selloff – those that almost always follow a major crypto product launch on Wall Street.
Analysis of how Bitcoin’s price volatility by experts and analysts
According to Nunya Bizniz, an independent analyst, the current situation can be approached from the perspective of past events. The launching of ProShares Bitcoin ETF comes by way of recalling two of such major events: first, the listing of Bitcoin futures on the Chicago Mercantile Exchange (CME) and then Coinbase stock’s debut on Nasdaq.
In each of these instances, Bitcoin surged to new all-time highs, only to plunge to indefensible lows.
CME launched its Bitcoin Futures product on Dec. 18, 2017, when Bitcoin reached its then all-time high of $20,000. Nevertheless, a year after the launch Bitcoin plunged to around $3,200.
The bitcoin price soared to a new all-time high around $65,000 ten days after COIN launched on Wall Street. BTC dropped to $28,800 after the rise in value was short lived yet again.
According to Lark Davis, another analyst, the launch of the ProShares ETF will not surprise him at all given previous events with CME.
The hope is that this time will be different, despite the bearishness associated with Wall Street crypto listings in general. Some analysts, like Todd Rosenbluth, head of ETF and mutual fund research at CFRA, and Noelle Acheson, head of market insights at Genesis Crypto, think the Bitcoin ETF’s debut will result in only a very small move down in spot Bitcoin prices.
One thing remains certain in all of this, however. Some experts expect slumps to last several months while others expect short-term slumps. Regardless, a price slump seems inevitable from all indications
This articale may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The authors or the publication does not hold any responsibility for your personal financial loss.