Bitcoin ETF Launch Could Propel BTC's Value to New Heights, say Top Trading Experts
Summary:
The article discusses expert opinion on Bitcoin's future price trends, the potential of a Bitcoin ETF, and the vital role of crypto derivatives. Figures from the Chicago Mercantile Exchange, TradingView, and TJM Institutional Services suggest a Bitcoin ETF could boost Bitcoin's price. TradingView's General Manager, Pierce Crosby, addresses the value of crypto derivatives and the appeal of the Bitcoin ETF as a cost-effective trading method. Meanwhile, Giovanni Vicisoso from CME Group and Jim Iuorio from TJM Institutional Services discuss the Federal Reserve's future role and the evolving relationship between monetary policy and Bitcoin.
Concerns regarding Bitcoin's (BTC) failure to surpass record highs are not unusual among amateur cryptocurrency dealers and forecasters. Nevertheless, figures from the Chicago Mercantile Exchange (CME), TradingView, and TJM Institutional Services believe a Bitcoin ETF's roll-out could be instrumental in catapulting BTC's price to coveted heights.
At a panel discussion about the evolution of crypto derivative markets at Consensus, TradingView's General Manager, Pierce Crosby, shared that crypto derivatives were fundamentally part of a crypto trader's journey. However, trading on the central exchanges from 2015 to 2022 often led to many spot and margin traders suffering from steep fees and market slippage.
In regards to traditional investment avenues, Crosby highlighted the appeal of the proposed spot Bitcoin ETF, stating it as a secure, cost-effective way for investors to enter and exit the market as needed.
Addressing the potential influence of the Bitcoin ETF on legitimizing BTC as a worthwhile investment and its role in future price discovery, Giovanni Vicisoso from CME Group suggested that ETFs brought in previously hesitant investors uncomfortable with centralized exchanges. He added that the CME contracts' rich liquidity and volume growth could positively impact Bitcoin’s price discovery.
There has been ongoing debates among investors since 2017 to 2021, regarding Bitcoin’s role as an inflation buffer and its unpredictable performance against the stock market. Addressing this, Jim Iuorio from TJM Institutional Services pointed out that although there may not be a pattern, the recent U.S. Treasury auctions serve as a warning sign. He predicted that the Federal Reserve might have to provide support to the market, implying that the historically beneficial relationship between relaxed monetary policy and Bitcoin might persist.
In closing, Crosby debunked the belief that cryptocurrency is only a variant of tech stocks, arguing that despite following the price actions of stocks, gold, and oil at times, and being affected by internal shocks like FTX exchange's failure and large centralized DeFi businesses, crypto would recover once the market dissociates from the perceived connection.
This news brief is intended solely for informational purposes and does not constitute legal or investment advice. The author's views and opinions may not necessarily reflect those of Cointelegraph.
Published At
5/31/2024 7:49:42 PM
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