Bitcoin (BTC) is currently struggling for a sustained rally as it seeks a new all-time high after a period of volatility earlier in the year. Notably, Bitcoin is targeting the $50,000 mark, with market participants pointing to the recently approved spot exchange-traded fund (ETF) and the upcoming halving as key catalysts.
In this context, Hunter Horsley, CEO of crypto index fund manager Bitwise Invest, suggested that 2024 is about to reveal the true valuation of Bitcoin in the capital markets.
In a February 9 X (formerly Twitter) article, Horsley noted that the advent of Bitcoin ETFs had significantly changed the Bitcoin pricing landscape, allowing for broader market participation that was previously limited.
“Forget what you knew about the price of Bitcoin. In 2024, we will find out how the entire capital market actually values Bitcoin,” he said.
According to the executive, the market has entered a new era of Bitcoin price discovery, noting that the market will determine the value of the premier cryptocurrency.
The introduction of Bitcoin ETFs has opened the doors to a more diverse group of investors, thereby increasing the number of bidders in the market. Horsley compared this to a scenario in which house demand increased tenfold, signaling a significant change in Bitcoin’s price dynamics.
Changing the structure of the Bitcoin market
In response to Horsley’s statement, David Lawant, head of research at digital asset brokerage Falcon Express his agreement. According to him, Lawant emphasized that the structure of the Bitcoin market has already changed.
“The structure of the Bitcoin market has already started to change (for the better). For example, volumes around ETF fix time as a percentage of total daily volumes (for USD pairs) increased significantly after the ETF spot launch,” he said.
Lawant’s observations suggest that the introduction of Bitcoin ETFs has had a positive impact on market structure, thereby reducing volatility. Fixed Hour, a designated time for ETF-related trading activities, saw a notable increase in trading volumes, indicating a broader and more stabilized market.
Indeed, both experts’ views on the future trajectory of Bitcoin prices emerge as BTC faces positive sentiments related to a potential slowdown in outflows from the Grayscale Bitcoin Trust ETF. It is worth noting that Bitcoin failed to recover after the ETF approval, with analysts pointing to GBTC’s profit-taking.
Meanwhile, Bitcoin was trading at $48,130 at press time, posting daily gains of almost 2%.
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