 
 
Spot Bitcoin ETFs might have set the stage for the apex cryptocurrency to thrive this year, according to market participants. The new development essentially positions Bitcoin for a highly anticipated long-term rally to send the asset to new price levels. Institutional adoption is expected to become the main driving factor of the asset.
In January, the U.S Securities and Exchange Commission approved 11 Spot Bitcoin ETFs, all of which began trading on Thursday, Jan. 11. Although bullish price predictions had flooded the crypto market before the approval, the SEC only recently issued its approval to a handful of applications.
Following the approval of these applications, Bitcoin recorded a continuous decline in its price value despite analysts insisting that the anticipated bull rally is still underway.
In a remarkable turn of events, Bitcoin bulls seem to be gaining more traction; as a result, the asset returned to the $50,000 price for the first time since December 27, 2021. In response to the new development, analysts highlight a significant change in Bitcoin’s performance, courtesy of the ETF approval.
In a recent post shared to X, formerly Twitter, a pro-Bitcoin trader has amplified expert sentiments, explaining that the next best rally might fail to pull Bitcoin below the $100,000 price level if the asset makes it there.
 
 
His reasoning is centred around the fact that institutional investors, most of whom are relying on ETFs to access Bitcoin, will remain connected to the asset. As a result, bear trends may no longer run as long as they previously did.
As the trader explained,
“The next Bitcoin crash may not even break $100k. The spot ETFs have introduced a permanent institutional bid for BTC. The first 15 years never had this. This means the all future bear drops should not only be much shallower but they are likely to be shorter in duration. We’ve only just begun.”
On-chain data strengthens the trader’s position, as Bitcoin investors reportedly take in gains. Long-term holders have been recording profits since Bitcoin returned above $50,000.
“Bitcoin investors have been rewarded for their patience and conviction, with BTC prices rallying to multi-year highs above $50k. The volume of supply held at a loss is also thinning quickly, with just 13% falling into this category.” Glassnode reports.
At report time, Bitcoin is trading at a press time price of $51,666, a 1.58% price dip from its daily high.
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- Source: https://zycrypto.com/spot-etfs-introduce-permanent-institutional-bid-for-bitcoin-heres-what-it-means-for-the-asset/
