Bitcoin’s ETF Boom: 30x More Impact Than Halving

Bitcoin is dipping in the face of record ETF inflows? All because FTX is back from the dead and sold over $1 Billion since GBTC was uplisted.  And GBTC continues to be the turd in the punchbowl with its high fees causing additional sell pressure.

Despite the downturn, this Analyst has given a fresh breeze of Bitcoin’s 30X surge hope. This bold forecast has sparked a mix of excitement and skepticism within the cryptocurrency community, highlighting the inherently unpredictable nature of the digital asset market.

Here’s what it means for the market. 

Adam Back’s Perspective on ETF Inflows vs. Halving Event

Adam Back, the CEO of Blockstream and a well-respected figure in the Bitcoin space, has chimed into the potential impact of Bitcoin exchange-traded fund (ETF) inflows compared to the upcoming Bitcoin halving on April 18th. According to Back, ETF inflows could have a staggering 30 X larger effect on the market than the highly anticipated halving event.

In his analysis, Back highlights the role of traditional finance (TradFi) participants, describing them as momentum buyers. He suggests that broker sentiment among traditional finance participants often drives a cycle of price increases. The involvement of what he calls “smart money” creates a cascade effect, generating news and attracting more buyers.

As a seasoned Bitcoin investor and the inventor of Hashcash, a proof-of-work system integral to Bitcoin mining, Back expresses confidence in Bitcoin’s fundamentals. He further digs the ongoing market conditions indicative of an early bull market, citing the approaching halving event and the increasing volume of ETFs. Notably, he points out that Fidelity’s FBTC has seen higher inflows than BlackRock’s IBIT in the last two days, signaling growing interest from new investors.

Fear, Uncertainty, and Doubt (FUD) Impact on Price?

Back says the recent drops in Bitcoin prices are more likely due to FUD (fear, confusion, and doubt) than structural net selling. He says there don’t seem to be any realistic large net sellers left in the market. He also talks about people trying to make fake dips in prices by selling out of fear and says that weak hands often time these actions wrong, buying back at higher prices and changing the way the market works.

“People can create their dip, selling in fear plus hope to buy lower.”

Bitcoin to Rise?

Despite short-term market fluctuations, the analyst maintains a positive outlook on Bitcoin’s future. As of the current market data, Bitcoin is trading at $39,248, reflecting the current scenario and uncertainties in the crypto market. Back’s analysis sheds light on the potential significance of ETF inflows and underscores the resilience of Bitcoin’s fundamentals.