After the recent approval of Bitcoin ETFs, BTC’s price has remained relatively stable. Santiment’s latest analyses suggest a noticeable trend linked to the anticipated approval of Bitcoin Exchange-Traded Funds (ETFs) last Wednesday.
The lack of significant movement in BTC’s price following the approval of Bitcoin ETFs has led to concerns about the ongoing bull market. Investors are now questioning what might unfold in the near future.
Bitcoin Price Trends After ETF Approval
Following the recent approval of Bitcoin ETFs, the price of BTC showed a relatively calm performance, settling around $42,000. Despite a brief surge to $48,000 post-ETF approval, subsequent selling pressure had a notable impact on Bitcoin’s value.
As highlighted by on-chain data provider Santiment, a discernible trend emerged with the anticipation of Bitcoin ETF approvals. Large Bitcoin wallets actively moved old coins at an accelerated rate, resulting in a significant reduction in the average age of coins held in these wallets.
Although there are signs that this movement of old coins has temporarily paused, it is speculated that this could introduce a potential pause in the ongoing bull cycle within the cryptocurrency market.
Santiment suggests that renewed market activity by a few significant whales has the potential to reinvigorate the market, leading to a further decrease in the average dollar investment age of Bitcoin. This could potentially test levels around $45,000 and even reach $50,000.
Market Focus Shifts to US Stock ETFs and Cryptocurrency Prices
Recent data from GreeksLive highlights the current focus of the financial market on US stock ETF trading and its potential impact on cryptocurrency prices. Notably, today’s block transactions have seen a substantial $120 million trading in large put options, constituting 16% of the total volume—a remarkably high figure compared to typical trading days.
A closer look at individual block transactions exceeding $5 million reveals a noticeable trend toward short selling in short-term put options. Simultaneously, smaller orders tend to favor buying short-term put options.
Despite reasonable concerns about the market outlook, there is a growing sentiment among large traders that the market may have found stability, providing a glimmer of hope amid existing uncertainties.
While the immediate impact of Bitcoin ETF approval may not be readily apparent, market analysts, including popular crypto analyst Michael van de Poppe, suggest its significant long-term importance. According to Poppe, “Bitcoin ETF provided negative returns from the start… The real impact of the ETF will be shown in the next few years. It’s a mega bull event.”
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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