Bitcoin market structure: Bitcoin is trying to keep increasing in value as it aims to reach a new highest price after a shaky start to the year. Bitcoin is now aiming for the $50,000 level. People in the market are pointing to the newly approved spot exchange-traded fund (ETF) and the expected halving event as the main reasons for this rise.
Hunter Horsley, the head of Bitwise Invest, a company that manages crypto funds, believes that in 2024, we will really see what Bitcoin is worth in the stock market.
On February 9, Horsley mentioned in an X (previously known as Twitter) post that the introduction of Bitcoin ETFs has changed how Bitcoin prices are set. Now, more people can buy Bitcoin than before.
The executive said that we are in a new phase where the market will decide Bitcoin’s price.
Bitcoin ETFs have made it possible for more types of investors to join the market, increasing the number of people who want to buy. Horsley compared this to a situation where ten times more people want to buy a house, showing a big change in how Bitcoin prices are set.
Changing Bitcoin market structure
David Lawant, who is in charge of research at Falcon X, a company that deals with digital assets, agreed with what Horsley said. He mentioned that the Bitcoin market has already changed.
Lawant’s findings show that starting Bitcoin ETFs has made the market better by reducing ups and downs. The specific time set for trading ETFs has seen a big increase in the amount of trading, showing a wider and more stable market.
The two experts have different views on what will happen to the price of Bitcoin soon. This is happening as people are feeling more positive about Bitcoin because there might be fewer people taking their money out of a big Bitcoin fund called the Grayscale Bitcoin Trust ETF. It’s important to mention that even after the Bitcoin fund got approved, its price didn’t go up. Experts think this is because people who invested in the GBTC are taking their profits.
At the same time, Bitcoin’s price was $48,130, and it had gone up almost 2% that day.
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