Crypto Analyst Says History Shows What Might Be Next For Bitcoin, But Is It Good Or Bad?
01 January 2024 - 11:00PM
NEWSBTC
Crypto analyst Ali Martinez recently provoked some thoughts in the
crypto community as he highlighted a historical pattern that
provides insight into where the Bitcoin price may be headed. This
comes as debate continues whether or not a potential approval of
the pending Spot Bitcoin ETF applications is a ‘sell-the-news’
event. Is History Set To Repeat Itself? In a post on his X
(formerly Twitter) platform, Martinez noted that Bitcoin had a
bearish January the last two times it saw a strong performance in
the last four months of the preceding year. If history were to
repeat itself, Bitcoin’s price could decline this month,
considering that it ended the last four months in 2023 on a
high. Related Reading: Bitcoin Spot ETF: Bitwise Closes Ranks
With $200 Million Seed Fund The crypto analyst suggested that those
bearish Januarys were likely a result of profit-taking, something
which he warned could happen again based on history. Market
intelligence platform Santiment recently reported that most Bitcoin
holders are in profit. Therefore, the projection of a profit-taking
trend in January is not far-fetched. This trend already seems
to have begun in December, as NewsBTC reported that Bitcoin whales
sold around 50,000 BTC worth $2.2 billion. While a bearish January
is expected based on history, there is also the argument that those
last two years didn’t have any event as bullish as the Spot Bitcoin
ETFs, which could be approved as early as this week. This
argument also leads to another discussion on whether approval of
these funds by the Securities and Exchange Commission (SEC) will
cause Bitcoin’s price to pump or dump. So far, crypto analysts have
been divided on what is likely to happen. Based on certain
predictions, Bitcoin could either rise to as high as $69,000 or
crash to as low as $35,000. Initial Impact Of Spot Bitcoin
ETFs Are Overestimated VanEck’s advisor, Gabor Gurbacs, recently
opined that the short-term expectations over a Spot Bitcoin ETF are
overestimated. Analysts like Galaxy Digital predict that these
funds could see inflows of up to a billion in their first month of
launching. However, Gurbacs begs to differ as he predicts that only
a few $100 million would flow into these funds in the short
term. Related Reading: XRP Price Surge: Crypto Analyst
Predicts Various Bullish Scenarios In The Coming Days The amount of
inflows that could move into these funds initially is significant,
considering the impact it could also have on Bitcoin’s price.
Trading firm QCP Capital had predicted that Bitcoin could revisit
its all-time high of $69,000 if these Spot Bitcoin ETFs see enough
capital in their first few weeks of trading. Meanwhile, in
the long term, Gurbacs is bullish on the impact these ETFs will
have. He predicts that Bitcoin could experience a similar growth to
the one Gold enjoyed upon the launch of Gold ETFs. Gold’s market
cap has grown exponentially since the first Gold ETF launched in
2004. Bitcoin’s market cap could also run into trillions with the
help of these Spot Bitcoin ETFs. Featured image from Inside
Bitcoins, chart from Tradingview.com
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