According to BTC Analyst Mitchell Askew, BTC Exchange-Traded Funds (ETFs) have permanently reduced volatility and market dynamics, which means Bitcoin (BTC) will no longer experience “parabolic” price increases or “catastrophic” bear markets.
“BTC/USD looks like two completely different assets before and after the ETF,” an analyst wrote Friday. The chart he shared showed that price volatility had been sharply reduced after the launch of Bitcoin ETFs in the US in January 2024. The analyst said:
“The era of parabolic bull markets and devastating bear markets is over. BTC will reach $1 million over the next decade through consistent vibrations between “pumps” and “integration.” Along the way, everyone gets bored until they die, shaking tourists from their position. ”
Bitcoin Price Action shows a more moderate price movement after the launch of Bitcoin ETFs in the US. sauce: Mitchell Askew
Eric Balknath, senior analyst at Bloomberg ETF, wrote that lower volatility will help Bitcoin “help attract even bigger fish and gives it a fighting opportunity to be adopted as currency.” The trade-off for this is that there is likely no more “God’s candle” added by the analyst.
The impact of Bitcoin ETFs on market dynamics is continuing to be discussed by market analysts. Investment vehicles are further intertwined with traditional financial, institutional investors and digital asset markets.
Related: Robert Kiyosaki warns of the risks posed by BTC, gold and silver ETFs
Bitcoin ETFs that change crypto market dynamics
Bitcoin ETFs currently lack a lack of physical redemption and are isolated from traditional investment vehicles that hang their funds.
By accumulating this capital, we can prevent the rotation into altcoins that crypto investors have come to expect from previous market cycles.
https://www.youtube.com/watch?v=2Sonoeg6wc8
In July, net inflows into Bitcoin ETFs exceeded the $50 billion mark, but the surge in capital to Bitcoin has not led to an increase in on-chain activity.
According to analysts, retail investors have shifted to Bitcoin ETFs, gaining exposure through traditional financial instruments rather than directly holding the BTC by a fund manager or another financial trustee.
With demand for Paper BTC and products like BlockRock’s Bitcoin ETF, asset managers have accumulated 3% of their total supply of Bitcoin, raising concerns about centralising some market participants.
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