Most of the tunes are set by BTC and ETH, with BTC leading the way. Now that the Spot Bitcoin ETF has entered the picture, analysts speculate that it will drive the price more strongly than before. On the brighter side, Bitcoin community members will see the price soar in the times to come.
Crypto Native Behavior in Bear Markets
Members switching to Bitcoin is a natural course of action. Ether follows the trend at every step. A reason why crypto enthusiasts look at Bitcoin and Ethereum before diverting a section of their funds is that they are often identified as safer assets at times of high risk. Not to be confused with a no-price drop scenario, safer assets majorly pertain to the fact that these assets are the ones that bounce back harder once the bull run kickstarts.
For instance, BTC was once dancing around $20,000. It has now climbed to ~$70,000, fetching desirable returns for a large number of short-term traders. Similarly, ETH was around $1,500 but has now climbed to $3,500.
Recent Market Movements
The recent movement in the market is driven heavily by the introduction of the Spot Bitcoin ETF. Analysts have stated that the majority of the fresh money that is coming to the segment is coming via the Bitcoin ETF. It then gets roasted in the chart, probably being diverted to other tokens like meme coins and/or AI tokens.
Advertisement
ETH is growing, but the pace is slower than anticipated. This is likely because the community is coming to terms with the fact that Ether ETF may not happen this year. A major report has not been about the US SEC rejecting Ether ETF applications. But speculations are floating all over the market to bring down the sentiments. Crypto natives, meanwhile, continue to sell BTC and ETH for other assets.
Price Impact
BTC is at $69,702.07, down by 0.85%. It did sustain a $70,000+ milestone for a while, likely rebounding to that space in a little while. This is credited to the inflow that ETF is recording every day on top of accumulation by whales—MicroStrategy, for one. Bitcoin is comparatively stable since the inflow to its native ETF is constant. Recent reports have cited that there has been an inflow of $859 million after an outflow in the previous week.
ETH has been down by a broader margin of 2.04% in the last 24 hours and is listed at $3,550.90 at the time of articulating this piece. A hint about ETH ETF approval could accelerate the bull run for Ethereum. Or, it could be the seamless passing of Bitcoin Halving in April 2024.
New Money Source
The first half of 2021 had a little retail inflow. It is right to assume that the Bitcoin ETF has boosted retail inflow by making way for retail investors to enter the market and trade the token without gaining exposure to actual holdings. This does not bring down retail inflow at that time but only signifies that there is a new source of inflow for the cryptosphere.
Money that enters via Bitcoin ETF gets circulated in the market at a later stage. BTC and ETH are safer assets when a bull run is expected to be right around the corner. However, the exploration of new assets is now a trend, with meme tokens and AI coins leading the charge.
Looking Ahead
Advertisement
Uncertainty is about the prices in 2024 and 2025. Approval of the Ether ETF would create an alternate source for the inflow of funds. Until then, the Bitcoin ETF is a source of financial power for the market.
