The trader suggests that instead of witnessing a flood of new capital into the Bitcoin market, what occurred was largely an adjustment of existing positions. The crucial point here is the distinction between trade volume and new inflows, the latter being apparently negligible on the first day.
Large accounts with substantial capital at their disposal tend to act with patience and precision. They are likely to avoid the initial frenzy of a new financial product’s launch, waiting instead for the market to stabilize before committing significant funds. From this standpoint, the first day of trading, while not indicative of immediate success in terms of fresh inflows, is not necessarily a failure but rather a period of adjustment and acclimation.
Furthermore, the stability in Bitcoin’s price, remaining within the $45,000 to $48,000 range even post-approval, suggests that the market is in a state of anticipation rather than reaction. This period could be seen as a stage of opportunity.
Upon reflection, it seems premature to label the Bitcoin ETF launch as unsuccessful. While the initial inflows may not have met expectations, the infrastructure for large-scale investment is only just taking shape. The prudent strategy for experienced investors—waiting out initial volatility—is a classic approach that may yet bring substantial yields in the long-term future.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
