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Buy with rumors, sell with news; The possibility of reducing the price of bitcoin after the release of the ETF

As the price of bitcoin rises, experts are raising the possibility that the green light for US lawmakers to offer tradable funds on the Bitcoin exchange and start trading them could cause the price to fall.

to the Report According to Bloomberg, forecasts and expectations for the start of bitcoin ETFs in the regulated stock markets are accelerating the price recovery, while the deadline for the US Stock Exchange Commission to decide on the licensing of these funds is coming to an end.

People like Juthica Chou, director of OTC trading on the Kraken Exchange, say that many small investors now buy bitcoins through platforms such as People and Square, and many large-scale investors make their living by buying bitcoins through cash registers. They start investing (like Gary Skill). He added:

For small investors, this [اتفاق] It acts as a kind of incentive. For institutional investors, offering such contracts greatly speeds up and facilitates the work; This means that their access to digital currencies will be much easier than in 2017.

Certainly [عرضه] An ETF is positive news. This will increase the reach of bitcoin buyers and their participation in the ecosystem; But its impact is not going to be as great as their approval in previous years; Because there is already a demand from institutional investors.

The release of Bitcoin ETF confirmation news on Friday pushed Bitcoin to the top of $ 62,933, crossing the $ 58,000 and $ 60,000 levels. However, many believe that the price increase was due to the “buy with rumors and sell with news” approach. “Stephen Oullette, CEO of the FRNT platform, says:

I am not sure that this will eventually lead to far-reaching changes in the accessibility of investors trying to enter the field.

It should not be forgotten that ETFs that are said to have obtained a trading license are based on futures contracts. Eric Balchinas believes that this can reduce their positive impact. “It simply came to our notice then.

Investors generally do not like derivatives, and many capital managers share this view. Physically supported ETFs can be a great catalyst (accelerator), but I think this ETF [فعلی] Catalysis is very minor.

As we have said, in the current situation, some analysts and experts say that users, after hearing the news of Bitcoin ETF approval, have made a purchase in anticipation of a further price increase, and by starting trading, they will seek to exit the market and withdraw their profits. Cause prices to fall.


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