BTC expects a price spike: Institutional investors aggressively buy Bitcoins
BTC expects a price spike: Institutional investors aggressively buy Bitcoins
Expectations of the U.S. Securities and Exchange Commission's (SEC) imminent approval of a spot Bitcoin ETF are sparking rumors of a possible BTC price spike. In response to this news, institutional crypto investors have moved from a wait-and-see stance to an offensive one. They are actively buying and accumulating Bitcoins (BTC).
Experts are confident that the U.S. Securities and Exchange Commission will approve spot BTC ETFs ahead of the January 10, 2024 deadline.
According to CryptoQuant analysts, leading cryptocurrency exchanges Binance and Coinbase have recently seen a widening gap in BTC price spreads. According to the analysts, this indicates aggressive activity by BTC buyers from the United States.
The spread has reached $50, which is a sign of active buying activity. BTC buying activity is likely to intensify ahead of the deadline for the approval of the spot Bitcoin ETF, according to CoinGape.
Arthur Hayes, co-founder of BitMEX, predicts a significant correction in Bitcoin. In a recent blog post, Hayes stated that he expects a correction of up to 40%. He attributed this to the current state of the market and the liquidity dynamics of the US dollar. Hayes also stressed the need to be vigilant during a potentially turbulent period.
"I expect Bitcoin to experience a healthy correction of 20-30% from whatever level it reaches by early March. The loss could be even more severe if the list of spot Bitcoin ETFs registered in the U.S. has already started trading," he explained.
In his calculations, Hayes points to critical variables shaping his forecast, including the decline in the Reverse Repurchase Program (RRP), the Bank Term Financing Program (BTFP) and the Federal Reserve's interest rate cuts. "The expectation of hundreds of billions of fiat money flowing into ETFs will push Bitcoin above $60,000 and close to its 2021 record high of $70,000. I can easily foresee a 30-40% correction due to the decline in dollar liquidity," he added.
Earlier, it was reported that MicroStrategy, the world's largest institutional holder of Bitcoin, is strengthening its position by accumulating BTC ahead of the launch of a spot Bitcoin ETF. The company increased its holdings by purchasing $615 million worth of Bitcoin. MicroStrategy now holds 189,150 BTC.
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