2024

Bitcoin ETF

Bitcoin

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The cryptocurrency landscape has been actively celebrating the approval of the first <a href="https://u.today/bitcoin-wallet-activity-dips-despite-etf-approvals">Bitcoin</a> ETF on Jan. 10. In its wake, the bid-ask spreads for BTC-USD markets on three major U.S.-available exchanges — Coinbase, Kraken and Bitstamp — have narrowed significantly, indicating a <a href="https://twitter.com/KaikoData/status/1755145379077841259">market effect</a> catalyzed by the long-awaited approval.
The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). A narrower spread typically signifies a more liquid market with a higher volume of trading and reduced transaction costs, which benefits users by providing more efficient pricing and the ability to execute larger trades without as much market impact.
<blockquote>
 The bid-ask spread for <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a>-USD markets on 3 major U.S.-available exchanges — Coinbase, Kraken and Bitstamp — have narrowed in the days following the spot ETF approvals. <a href="https://t.co/W9e8zv3cIz">pic.twitter.com/W9e8zv3cIz</a>— Kaiko (@KaikoData) <a href="https://twitter.com/KaikoData/status/1755145379077841259?ref_src=twsrc%5Etfw">February 7, 2024</a>
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For Bitcoin, the implications of narrowed spreads are diverse. Improved liquidity suggests increased market participation, potentially attracting more institutional and retail investors. This is particularly relevant as the approval of a Bitcoin ETF offers a regulated, accessible avenue for exposure to Bitcoin without the complexities of direct cryptocurrency ownership.
Since the ETF's approval, <a href="https://u.today/bitcoin-critic-peter-schiff-not-happy-with-new-sec-rules">Bitcoin's</a> price movement has demonstrated increased volatility, a common occurrence as markets adjust to new liquidity and investor interest. Analyzing the Bitcoin price chart, local support levels seem to solidify around the $40,000 mark, a psychological threshold for the asset. Resistance, on the other hand, hovers near the $43,000 to $45,000 range, where <a href="https://u.today/top-fed-official-slams-bitcoin">Bitcoin</a> has encountered selling pressure.
For users, the ETF's introduction likely translates to more stabilized trading conditions and the potential for broader acceptance of Bitcoin as a mainstream investment. Reviewing Bitcoin's performance since Jan. 10, we have seen a test of resilience at support levels fueled by the active BTC selling coming from Grayscale.

Major Bitcoin ETF Effect Revealed on Coinbase, Kraken and Bitstamp

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