With Bitcoin firmly establishing itself as a crucial institutional asset, the emergence of new Bitcoin Exchange Traded Funds (ETFs) marked a significant milestone.
“Bitcoin is now an important institutional asset unlike ever before,” analysts at Decimal Digital Currency said in a note.
These ETFs are not only witnessing substantial weekly net inflows, but they also collectively hold a staggering amount of Bitcoin, surpassing the 1 million mark when considering entities like MicroStrategy.
This accumulation trend is already exerting its influence on Bitcoin’s price trajectory, with the impending halving set to reduce monthly new BTC supply by approximately $800 million at current prices.
Decimal Digital Currency analysts foresee this dynamic fueling further ascent towards new all-time highs throughout 2024. Still cryptocurrency investors often find themselves vulnerable to significant losses when market sentiment undergoes a reversal.
“We are not surprised to see this correction ahead of the halving, liquidating the more extreme bullish bets before an upward continuation, and would definitely call something like this a ‘buy the dip’ opportunity,” they said.
Analysts anticipate a period of extreme bullish activity, punctuated by occasional dramatic sell-offs, as market participants navigate their pre- and post-bitcoin halving strategies.
While investors rush to accumulate Bitcoin, analysts warn that “price action takes time to follow local supply and demand.”
“We may see exuberant bullish action, dramatic sell offs, or both, before and after the halving as market participants roll into and out of their halving bets,” analysts at Decimal Digital Currency further noted.
Source: Cryptocurrency - investing.com
