- False information about BlackRock’s Bitcoin Spot ETF approval triggers a notable Bitcoin price spike.
- Crypto experts share diverse opinions on the price impact of an actual Bitcoin Spot ETF approval.
Bitcoin’s Rollercoaster Ride Sparked by ETF Rumors
In an unexpected sequence of events, misleading news concerning the approval of BlackRock’s iShares Bitcoin Spot ETF instigated a substantial Bitcoin price leap, catapulting the leading cryptocurrency to a two-month peak of about $30,200 (as observed on Bitfinex). While the surge was short-lived, correcting after the exposure of the false intel, this rapid fluctuation has ignited discussions among crypto analysts about the potential ripple effect on Bitcoin’s value, should an authentic Spot ETF endorsement materialize.
Despite the chaos, Larry Fink, BlackRock’s CEO, showcased unwavering support for Bitcoin. In a recent television segment, without naming “Bitcoin” explicitly owing to securities regulations and the ongoing ETF application, Fink highlighted the burgeoning global demand for crypto. He asserted that Bitcoin has emerged as a sought-after financial refuge, citing the term,
“flight to quality.”
Differing Forecasts on Genuine ETF Approval’s Impact
The market’s immediate response to the erroneous update caught the attention of macro analyst Alex Krüger.
“This response undeniably underscores that the ETF isn’t factored into the current price,”
Krüger stated, anticipating a potential 20% surge upon genuine endorsement. In contrast, a commentator named Troy attributed the market’s reaction to the sheer unexpectedness of the news. This back-and-forth highlights the nuances in interpreting market behavior, especially given that information regarding SEC’s ETF decisions is seldom prematurely disclosed.
Corroborating this sentiment, market psychology connoisseur, Christopher Inks, provided his outlook:
“Should Bitcoin’s price cross the $31K threshold, it might pave the way for a rally reaching up to the $38-$40K vicinity.”
He further delineated Bitcoin’s bullish pattern over the past weeks and related the recent surge to predictable market dynamics.
Chiming in, Eric Weiss, chief at the Blockchain Investment Group, conveyed via X (previously known as Twitter), that this brief tumult offers a sneak peek into the potential uproar a real Bitcoin Spot ETF approval could incite. He continued, elucidating that genuine price augmentation will emerge from the ripple effect of ETFs transacting in USD to acquire Bitcoin. This dynamic will tilt the supply-demand balance, potentially propelling Bitcoin to unprecedented highs.
However, not everyone shared this bullish sentiment. Jeff Dorman, the chief investment officer at Arca, underscored the preeminence of actual market movement over mere announcements. Reflecting on historical parallels, Dorman drew comparisons to gold. Post the 2004 nod for the first U.S. gold ETF, gold’s price experienced a significant upswing. Many now speculate a similar trajectory for Bitcoin, especially with financial behemoths like BlackRock, Fidelity, and Invesco lining up with their Spot ETF propositions.
As of the last report, Bitcoin was valued at $28,473, surpassing the pivotal resistance observed over the preceding two months.