A prank on Wall Street?After the Bitcoin ETF was launched, traders weighed the potential of “sell news”


Wall Street opened the door for the first Bitcoin (Bitcoin) Exchange-traded funds (ETF) On October 19, ProShares Bitcoin Strategy (BITO) was listed on the New York Stock Exchange.The fund Attracted more than 1 billion U.S. dollars On the first day of trading volume, the BTC price rose to a record high of $67,000.

However, the spot gains did not last long, and BTC cut some gains over the weekend.

Bitcoin price correction On Saturday, it fell nearly 11% from an all-time high to a level below $60,000, sparking concerns about the sell-off that usually occurs after the launch of major crypto derivatives on Wall Street.

Analysts call for broader BTC corrections

Independent market analyst Nunya Bizniz on Twitter, recall The second such major event: the first listing Bitcoin futures on the Chicago Mercantile Exchange (CME) and crypto trading service Coinbase’s stock (COIN) made its debut on the Nasdaq Stock Exchange.

The notable Wall Street listing coincided with the peak Bitcoin spot price. Source: TradingView

It is worth noting that CME Group launched its Bitcoin futures product on December 18, 2017, namely Bitcoin rises to a record high of around $20,000. But this release also marks the beginning of one of Bitcoin’s longest bear market cycles Bottom of about 3,200 USD Twelve months later.

Similarly, the high-profile COIN first landed on Wall Street April 4, 2021, coincided with Bitcoin’s rebound to a record high of about $65,000 after ten days. Nevertheless, the upward movement encountered a round of strong selling, which caused BTC to pull back to a low of $28,800.

As a result, the recent ProShares Bitcoin ETF has caused Bizniz and many other analysts to worry about the so-called “Buy rumors, sell newsCorrection. For example, analyst Rack Davis pointed out that if the price of Bitcoin plummeted after the launch of the ProShares ETF, like CME Bitcoin futures, he would “not be surprised.”

In addition, Dan Morehead, CEO and Co-Chief Investment Officer of Pantera Capital, Wrote in the newsletter Earlier this month, before the launch of the Bitcoin ETF, “he might want to take some chips”.

The debut of the Bitcoin ETF is impressive

Despite the historical bearish sentiment associated with the high-profile Wall Street cryptocurrency listing, some analysts believe that the Bitcoin ETF’s Impressive debut This means that the downward trend of the Bitcoin spot market is limited.

Todd Rosenbluth, CFRA ETF and Mutual Fund Research Director, Tell the financial times ProShare’s $1 billion debut is a “sign of pent-up demand” for traditional financial companies, who want to take a share of the emerging crypto industry.

JPMorgan Add to In the first two days of the transaction, retail traders accounted for only 12-15% of the net inflow of BITO.

related: Bitcoin determines the fate of $60,000, because the weekly closing keeps BTC traders on the alert

This shows that institutions have a strong interest in Bitcoin ETFs, and the cash margin Bitcoin futures open interest It has risen as much as 79% so far this month, and the CME basis has risen from a negative value in July to more than 16% earlier this week.

Open Bitcoin futures contracts on all exchanges. Source: ByBt.com

Noelle Acheson, head of market insights at the crypto trading company Genesis, famous Bitcoin’s perpetual futures rolling basis (a measure of leverage demand) has increased, but it is still only 13.08%, compared with 34.6% in mid-April.

In the recent BTC spot market adjustment, high leverage is still a common factor. In other words, the current neutral financing rate indicates that the possibility of a sharp correction is relatively low.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.