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Bitcoin faces correction after spot ETF surge.

By Solomon Victor

Bitcoin (BTC) is facing correction after a surge due to the spot Bitcoin ETF approvals, which propelled its price above $48,000. Meanwhile, Ethereum (ETH) is showing strengths amidst expectations for its spot ETF approval. 

Bitcoin experiences volatility.

As spot Bitcoin ETFs finally emerged on the reputable U.S exchanges, it broke headlines as bitcoin surpassed $48,000, marking a milestone in the crypto industry. However, the promising start was followed with a retracement that casts doubt on the market’s sustainability.

As a notable figure in traditional finance, the perspective on Bitcoin that JP Morgan CEO Jamie Dimon presented in his interview with CNBC was dismissive. Aware of the benefits that blockchain offers, Dimon mockingly called Bitcoin a “pet rock” because sometimes it is associated with fraudulent issues including anti-money laundering, tax evasion as well as sex trafficking. However, he defended the right of people to use cryptocurrency to provide real life solutions, presenting a more subtle argument.

Read also: Historic U.S SEC approval paves way for spot Bitcoin ETFs trading

Read also: Bitcoin dips 3% after False U.S SEC Spot Bitcoin ETF approval

Bitcoin (BTC) price is currently trading at $41,600, representing a 2.6% decline in the last seven days, according to data on CoinGecko. With a weekly Relative Strength Index (RSI) value of 60.5, BTC is facing potential downward move, especially if it closes below $40k on the weekly timeframe. Resistance lies at $45,000, with a breakthrough potentially triggering further upward movement.

Fidelity’s FBTC hits a success milestone by accumulating over $1 billion in assets under management within five days of trading and is just behind BlackRock’s iShares Bitcoin Trust. Other spot Bitcoin ETFs including ARK 21Shares’ ARKB and Invesco BTCO also attract massive flows, pointing to increasing demand by investors.

Although there was a promising beginning, the overall market sees an outflow of $131 million for all spot bitcoin ETFs on day five. Significantly, the Grayscale spot bitcoin ETF has a massive outflow of $2.2 billion.  

Kyle Chassé, the founder of Master Ventures believes that bitcoin has a bright future ahead with $100,000 dollars value by May 2024. According to Chassé, this anticipated surge is driven by institutional buy pressure that focuses on growing assets under management. He expects occasional 15-20% pullbacks but continues to stay positive about bitcoin.

Ethereum shines amidst ETF anticipation.

Ethereum stands in strength against bitcoin on expectations of spot ETH ETF approvals. QCP Capital revealed an uptick in Ether’s value compared to bitcoin’s decline following the approval of spot BTC ETFs. The exchange rate of ETH/BTC rose from 0.05 to 0.6 over a week, signaling a possible uptrend. 

Upcoming events, like the Bitcoin halving of mid-April and expected spot Ethereum ETF approvals from May add to the positive momentum for Ethereum. The acknowledgement by the CEO of BlackRock Larry Fink on the need to value Ether spot traded through an ETF in addition to filing for a similar product further consolidates this discourse. 

Read also: Is the next bitcoin halving in 2024 going to be the magic wand for a bullish run?

Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.