Ethereum

Bitcoin ETF

Bitcoin

<h4>The approval of the various Bitcoin ETF applications was less than a week ago. We saw a short pump, followed by a correction.&nbsp;</h4> 
There are different scenarios for how the Bitcoin ETF approval will play out. In the short term, as well as in the long term. So, we’re going to take a look at four possible consequences of the Bitcoin ETF approval. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Today is a historic day in financial markets. 
 The bitcoin spot ETFs begin trading this morning and billions of dollars will flow into the asset class. 
 This will impact price, fees, volatility, and much more. 
 Here is my conversation on <a href="https://twitter.com/SquawkCNBC?ref_src=twsrc%5Etfw">@SquawkCNBC</a> this morning. <a href="https://t.co/3POCbE0Y0E">pic.twitter.com/3POCbE0Y0E</a> 
 — Pomp <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f32a.png" alt="🌪" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@APompliano) <a href="https://twitter.com/APompliano/status/1745426551942857187?ref_src=twsrc%5Etfw">January 11, 2024</a>
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<h5>1) Bitcoin Price Action</h5> 
Everybody expected a Bitcoin price pump after the <a href="https://www.altcoinbuzz.io/regulations/bitcoin-etf-decision/" target="_blank" rel="noopener">approval</a>. Sure enough, on Thursday morning, the BTC price went up to almost $49k. This happened as soon as the stock exchange opened. It was not expected to last very long, though, this pump. However, I doubt that many people expected it to only last for one day. On Friday 12th January, the <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener">BTC price</a> was already dumped. It touched $41.3k and settled around $42.7k. It seems as if this spot ETF was already priced in. The picture below shows the BTC price action over the last couple of days. 
<img decoding="async" class="aligncenter wp-image-131731 size-large" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-1024x463.png" alt="Bitcoin spot ETF" width="696" height="315" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-1024x463.png 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-300x136.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-768x348.png 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-1536x695.png 1536w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-696x315.png 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-1068x483.png 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_-928x420.png 928w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-312-42681.11-｜-BTCUSDT-I-Binance-Spot-www.binance.com_.png 1920w" sizes="(max-width: 696px) 100vw, 696px"> 
Source: <a href="https://www.binance.com/en/trade/BTC_USDT?type=spot" target="_blank" rel="noopener">Binance</a> 
We can safely conclude that the short-term impact of this approval is quite overrated. On the other hand, it’s also safe to say that the long-term effect is rather underrated. The current BTC price is $42,720 and since Friday, it has been moving sideways. The question is if the market has already bottomed out, or if we dump even further. Once the Bitcoin starts to go up from here, the second leg of this bull run may have started. Remember, the last bull run had three legs.&nbsp; 
<h5>2) Ethereum in the Spotlights</h5> 
The next big thing could be an Ethereum spot ETF. As we mentioned before, the Bitcoin spot ETF was already priced in. Now the same thing can happen to <a href="https://www.altcoinbuzz.io/?s=ethereum" target="_blank" rel="noopener">Ethereum</a>. On the 10th of January, Ethereum pumped about as hard as Bitcoin. It went from $2,340 to $2.580. If the belief in an Ethereum spot ETF remains, it can keep pumping. ETH won’t be doing a 20x, but 3-4x this year is quite possible. Especially with the spot ETF news. The picture below shows the <a href="https://www.coingecko.com/en/coins/ethereum" target="_blank" rel="noopener">ETH pump</a> on the 10th of January and the peak 2 days later at $2,717. 
<img decoding="async" class="aligncenter wp-image-131730 size-large" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-1024x463.png" alt="Bitcoin ETF" width="696" height="315" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-1024x463.png 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-300x136.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-768x348.png 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-1536x695.png 1536w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-696x315.png 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-1068x483.png 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_-928x420.png 928w, https://www.altcoinbuzz.io/wp-content/uploads/2024/01/FireShot-Pro-Webpage-Capture-313-2524.76-｜-ETHUSDT-I-Binance-Spot-www.binance.com_.png 1920w" sizes="(max-width: 696px) 100vw, 696px"> 
Source: <a href="https://www.binance.com/en/trade/ETH_USDT?type=spot" target="_blank" rel="noopener">Binance</a> 
It is, of course, all about speculation. But let speculation now exactly be what fuels the fire. We saw an incredible BTC price run over the last 13 weeks, based on spot ETF speculation. Here’s something that we should keep in mind, though. Once Ethereum has a run, there’s something else that also tends to have a good run. Let’s discover that in the next part.&nbsp; 
<h5>3) Altcoin Season</h5> 
Altcoin season is in the making. An Ethereum price run typically goes hand in hand with a run for <a href="https://www.altcoinbuzz.io/?s=altcoins" target="_blank" rel="noopener">altcoins</a>. Bitcoin will come back into the picture again, don’t worry. In 94 days, the Bitcoin halving is there. That’s when all the spotlights move back to Bitcoin. 
However, meanwhile, it wouldn’t surprise me if we saw a first, modest, or minor altcoin season. There’s plenty of time, to see some altcoins go on a roll. That’s how this tends to play out. Bitcoin opens the ball with the first dance. Ethereum immediately takes the dance floor as well, shortly after Bitcoin. Last but not least, all the bystanders or altcoins start joining the fun. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;">ALTCOIN SEASON<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> 
 The <a href="https://twitter.com/hashtag/Altcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoin</a> season indicator has just flashed. Do we trust it? Or is it a fake out!!<a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> <a href="https://t.co/gCo5LKAktU">pic.twitter.com/gCo5LKAktU</a> 
 — Crypto Macro (@cryptomacro14) <a href="https://twitter.com/cryptomacro14/status/1746813675921649929?ref_src=twsrc%5Etfw">January 15, 2024</a>
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The best time to position yourself is during the bear market. That’s where you have a DCA strategy in place, or other means to fill your bags. During the bull run, that’s when you reap the benefits. It’s not too late, there’s still time left to look around for good opportunities. Various coins still offer good entry points. 
<h5>4) Bitcoin Gets the Bull Run Ball Rolling</h5> 
The <a href="https://www.altcoinbuzz.io/?s=bitcoin+halving" target="_blank" rel="noopener">Bitcoin halving</a> is only a bit over three months away. By that time, Bitcoin is about to take center stage again. The Bitcoin halving is another event that fuels speculation again. As we know by now, speculation fuels crypto prices. If the BTC price goes up, most other crypto assets will follow suit.&nbsp; 
At the same time, this may be when the Bitcoin spot ETFs start doing their thing. As mentioned earlier, their long-term effect is quite underrated. More and more institutions will find their way to the Bitcoin spot ETFs. This process triggers plenty of other actions. At some stage, Bitcoin scarcity will come into play as well. All these reasons will help to increase the upward trend for the BTC price. In the long term, expect more demand for Bitcoin.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> halving in 94 days… <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f680.png" alt="🚀" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/6PQH3EmueT">pic.twitter.com/6PQH3EmueT</a> 
 — Bitcoin Archive (@BTC_Archive) <a href="https://twitter.com/BTC_Archive/status/1746525575114641619?ref_src=twsrc%5Etfw">January 14, 2024</a>
</blockquote> 
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Remember what the Bitcoin supply is? It’s 21 million, not one single BTC more. Most likely, there will be a lot less BTC available. People have lost their keys to their wallets or have lost wallets altogether. Estimates range between 25% to 30% of the Bitcoin supply being lost. That’s around 6 million BTC. In other words, that leaves us with a 15 million BTC supply. Did I mention scarcity already? 
So, that means one thing, the BTC price will increase. The <a href="https://www.altcoinbuzz.io/?s=bull+run" target="_blank" rel="noopener">bull run</a> is on. Everybody is getting excited again. Crypto is back on the map and retail is looking into it again. So are the media and this time around, also the institutions. 
<h5>Conclusion</h5> 
The expected pump after the Bitcoin spot ETF approval was short. However, in the long run, this approval is of important. Institutions will find their way to Bitcoin. This will result in a pump for the whole market. Ethereum and all other altcoins will also profit. With the Bitcoin halving coming up, the crypto market is in a positive vibe. The bull run is about to start in full swing. 
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Disclaimer 
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. 
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. 
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Bitcoin ETF Approval: 4 Possible Consequences

Altcoin Buzz

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