In the ever-changing cryptocurrency market, significant trends are emerging, notably in Bitcoin investment and the pending decision on spot Bitcoin ETFs.
Bitcoin Short ETPs Experience Over $1M Outflow
Defying expectations, Bitcoin short investment products saw over $1 million in weekly outflows, reflecting a bullish market sentiment. This shift goes against the anticipated “buy the rumor, sell the news” response to the potential approval of spot Bitcoin ETFs, suggesting a possible Bitcoin bull run.
Meanwhile, digital asset investment products (ETPs) attracted significant inflows. CoinShares reported a substantial $151 million inflow in early 2024. Since the Grayscale vs. SEC lawsuit resolution, total inflows have hit $2.3 billion, indicating strong interest in immediate Bitcoin investments.
U.S. Exchanges Lead Investment Inflows
U.S.-based exchanges played a major role, contributing 55% of the total investment inflows in the first week of 2024. This highlights the global interest in the possible approval of the U.S.’s first spot Bitcoin ETF, reflecting the growing Bitcoin in the USD market.
On January 8th, the Grayscale Bitcoin Standard saw extraordinary trading volumes, outpacing over 99% of existing 3,000 ETFs. Concurrently, Bitcoin’s value rose, reaching $46,865 in USD, further fueling the Bitcoin bull run sentiment.
2024’s Bitcoin Bull Run: Key Milestones
2024 starts with a bullish sentiment in crypto, focusing on the U.S.’s first potential spot Bitcoin ETF approval and the upcoming Bitcoin halving in April.
However, BitMEX founder Arthur Hayes offers a cautious view. He predicts a significant market correction in March, potentially 20-30%, tied to the launch of U.S.-listed spot Bitcoin ETFs and dollar liquidity issues.
Hayes’ Approach and Positive Long-Term Outlook
Hayes plans to hold off on Bitcoin investment purchases until the March decision dates, intending to buy put options expiring on June 28th. Despite foreseeing short-term market dips, Hayes is positive about the overall crypto bull market, expecting stabilization by the March end, indicating continued interest in the Bitcoin Standard and the evolving Bitcoin in USD market dynamics.
