Many Medium authors have been quick to dismiss #Bitcoin following lackluster returns post ETF Approvals.
I have read a couple of articles here on Medium that have been quick to call for Bitcoin’s demise given that the ETF Approvals haven’t produced face-melting upside bitcoin returns yet.
However, anyone who has been paying attention to the price of Bitcoin over the last year has made a pretty penny.
In fact, if you invested in Bitcoin on the day that Blackrock Filed their Spot Bitcoin ETF Application on June 15, 2023, you would currently be up a cool $17,319, or 67%.
Smart money would have known this and played this trade. Money was made. The ETF Approvals were not a sell the news event. It was priced in.
With that little rant out of the way, let’s get into the meat of this article and take a step back to ask ourselves how the next 30 to 60 days could play out for Bitcoin.
In doing so, we can set the stage for the Short Term Bullish Case for Bitcoin in Q1 of 2024 leading up to the halving event in April.
The wave of GBTC selling pressures on Bitcoin which have thus far neutralized any positive response that we may have seen as a result of the ETF approvals has now played its course.
On the other hand, the ‘New 9' Bitcoin ETFs have been relentlessly accumulating bitcoin. The top 9 Bitcoin ETFs have already totaled 175,000 Bitcoin, valued at 7.5 Billion. All in just 18 trading days.
These massive dollar inflows into the ETF may sound mindboggling however they make sense when you start to consider the advantages that holding Bitcoin in an ETF offers to the average individual like yourself.
Five Reasons to Buy the Bitcoin ETF and NOT Bitcoin
Over the next 30 to 60 days there will be 20–40 more trading days. It would be reasonable to bet that this could result in between 4–6 Billion in new USD inflows. At a market cap of 850 Billion, it's pretty easy to see how this could move the price of bitcoin 50% up to the mid $60,000 per coin range.
I believe that once bitcoin gets within sniffing distance of the previous All-Time-High, you could see retail investors who wouldn’t normally be interested in Bitcoin suddenly gain interest. It is simply human nature at play. If the price were to reach the previous all-time high before the halving it could be the equivalent to pouring gasoline on the fire.
In conclusion, the last 12 months have been very kind to anyone who has kept it simple and bought and held bitcoin in cold storage on a consistent basis. Given the increased demand that the ETFs have delivered plus the reducing supply of the upcoming Bitcoin Halving, I don’t think it takes a very large leap of faith to come to the conclusion that 2024 will also be very kind to holders of Bitcoin.
I believe that a surface-level analysis of these supply and demand relationships is the quintessential ‘Bitcoin Basics’ that my page can offer to readers. If you enjoyed today’s article please be sure to follow for more.
If you would like to read more of my writing on this topic, I would offer for you to check out my article titled “Are You Ready To Witness The Financial Fireworks?” which breaks down how Institutional ETFs allow the big money of the financial system to finally come to play in the Bitcoin Ecosystem
Are you ready to witness the financial fireworks? | The Bitcoin ETF Explained
The Short Term Bullish Case For Bitcoin (February 2024) was originally published in The Dark Side on Medium, where people are continuing the conversation by highlighting and responding to this story.
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