like more and more Bitcoin As products such as futures ETFs enter the market, crypto investors, and even those who are staunchly opposed to ETFs, need to understand how these institutional products can affect the price of Bitcoin.
Learn more, what bitcoin did host Peter McCormack spoke with on-chain analyst Willy Woo about Bitcoin’s declines in December and January.
So who is to blame here?
Some estimates put the price of Bitcoin above $100,000 in 2021, but at press time the king coin was trading at $38,073.32. So which group of investors was responsible for the most sell-offs?
Call current phase “strange,” Woo stated that the market is restructuring. Watching Bitcoin drop from $69,000 to below $40,000, he additional,
“…there weren’t a lot of HODLers selling, I tell you. There was only short-selling risk from futures exchanges. Those traders led the price — they would dump their futures, their quarterly futures, and eventually the HODLers started selling lower ever so slightly.”
Also, woo explained this trend was different from the May 2021 crash, a time when HODLers were major sellers.
Return to the future
So is it fair to say that Bitcoin Futures ETFs hurt Bitcoin? Woo certainly felt that way and he pointed that people who wanted to own Bitcoin could go and buy it on an exchange, instead of opting for an ETF. That said, the analyst accepted that futures ETFs are “very good” instruments for institutional buyers who want regulated crypto assets. Court continued saying,
“But if you are going to buy Bitcoin to hold it, you would be an idiot to buy the ETF that is currently structured because it is so expensive to hold.”
More than crystal ball predictions
Traders might be interested to hear that although PlanB’s prediction of a $100K Christmas for Bitcoin didn’t pan out, the analyst still believes in his Stock-to-Flow model. PlanB took to Twitter to explain that the indicators still point to Bitcoin crossing $100,000 in 2024. He concluded,
“My money is still in S2F. 2022 will be very exciting!”
However, PlanB is not the only analyst eyeing the actual coin. The Finder Report, for example, asked 33 industry experts for their Bitcoin price predictions. They Estimate that Bitcoin would top out at $93,717 before corrections bring it down to $76,360 by the end of this year.
In particular, many experts are carefully following the statements of the Federal Reserve to see how a change in interest rates would affect the price of Bitcoin.
This is an automatic translation of our English version.