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.
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.
No, God. No god, please don’t! Do not! Do not! Do not! pic.twitter.com/ITKFBJqK6h
-Nunya Bizniz (@Pladizow) October 22, 2021
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.”
#Bitcoin CME Group Futures
-Announced on October 31, 2017.
-BTC rose by 224%
-Launched on December 18, the day when BTC hit the 2017 market highIt will not be shocked to see that the ETF is launched in this way.
Epic buys rumors, sells news events pic.twitter.com/sKrmhdLxQv
-Lark Davis (@TheCryptoLark) October 8, 2021
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.
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.
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