The BTC price has had a violent reaction to the approval of spot ETFs. The world’s largest cryptocurrency, which shot to $49K at one point a few days back, is down to $42K now. Fear has taken over the market, with bears predicting a plunge below $35K toward the end of the month.
But things are not as dull as the current sentiments project. With more ETF approvals on the horizon and the excitement around Bitcoin halving yet to unfold, BTC will be back on track soon.
Meanwhile, the Bitcoin Minetrix presale has crossed the $8.5M milestone, as investors hoard the token for discounted prices before the next crypto pump.
Why BTC is Not Crashing to $35K As Bears Fear
There are more factors than the fleeting social sentiments at play when it comes to the long-term price action of BTC.
Miner outflow, source: CryptoQuant
As is often the case, bears overpowered the market after the news of the spot ETF approval surfaced. But the sell-offs are primarily driven by short-term holders who have their trading strategies hooked to individual market developments.
But with Bitcoin halving set to be implemented in April, long-term investors are holding tight onto BTC. To give a better perspective, the percentage of long-term holders is around 76% now. They will drive the course of the asset, even if short-term traders succeed in creating ripples from time to time.
Their strategy is backed by historical trends, as years that host Bitcoin halving are known for their steep price rises. It is rational to expect BTC to climb the charts this year, as a result, and it won’t be wildly optimistic to predict the token to break past its current all-time high of $68K. The massive price action is most likely to unfold toward the end of the year, as multiple developments in the market catalyze a rally.
Is the ETF Craze Over?
The minor pullback that followed the ETF approval is expected, as explained above. That said, ETF news has its own relevance in the market’s journey. It wouldn’t be surprising to see developments in the BTC ETF market take BTC above $50K in the coming days, as bulls break into action.
BTC 7-day price action, CoinMarketCap
The approval of Bitcoin ETFs marks a big step for the industry. They track the price of Bitcoin and follow its price movements. Their relevance is underscored by the fact that they give investors exposure to the digital asset without the need to buy and store it.
In addition to paving the path for institutional recognition and widespread adoption of digital assets, they will provide a new stream of investment for traditional investors trapped in uncertainty.
The negative correlation between uncertainty in traditional markets has most often worked in favor of the crypto market, reflected in the prices of high-cap cryptocurrencies. The US elections of 2024 and macroeconomic conditions are likely to trigger similar trends as investors find haven in digital assets.
But the long-term impact of the ETF market will be determined by the size and consistency of inflows to the ETFs. As institutions restructure their portfolios to allocate BTC and launch consumer and retail products that promote the adoption of digital assets, the price will be bound to respond organically.
But that will happen over the next few years. An immediate reaction based on speculation will be susceptible to price corrections.
Wild Predictions Cross $100,000 to Touch $200,000
BTC has been witnessing wild predictions over the last few months. For example, in a note to investors, Geoffrey Kendrick, the head of financial research at Standard Chartered Bank, said that “If ETF-related inflows materialize as we expect, we think an end-2025 level closer to [$200,000] is possible”.
BREAKING‼️Global banking giant Standard Chartered says $50-$100 BILLION could flow into #Bitcoin ETFs in 2024 pic.twitter.com/yQobJcs6EA
— Bitcoin Archive (@BTC_Archive) January 8, 2024
$8.5M Raised and Counting: Investors Turn to Bitcoin Minetrix For the Next Rally
Bitcoin Minetrix has been capitalizing on the volatile movements of BTC and the rapid developments in the ETF scene over the last few weeks. The presale of the cloud mining token passed the $8.5M milestone just recently.
While it may seem like the project is designed to cash in on the BTC hype, $BTCMTX is deep-rooted in a market-relevant utility. The stake-to-mine dashboard simplifies cloud mining for retail participants who just need to stake their $BTCMTX tokens to earn BTC mining credits.
High-profile crypto analysts like Austin Hilton and Michael Wrubel are optimistic about the project.
The cloud mining token is on its way toward an early presale sell-out at the time of writing. Once it is sold out, investors will have to buy $BTCMTX for market-determined prices from popular crypto exchanges.
Factoring in the high market relevance of the project, the token has high growth potential, ranging from a conservative 10X to a FOMO-driven 50X.
BUY $BTCMTX TOKENS FOR THE PRESALE PRICE
