There is news from crypto research firm K33 Research. It covers the potential impact of US spot Bitcoin ETFs on the cryptocurrency market. Accordingly, it released a report emphasizing that it believes ETFs have been significantly underestimated. K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth argue that, despite the prevailing market sentiment, this is a buyer’s market where prices should rise significantly.
Positive outlook for Spot Bitcoin ETF approval
According to analysts from K33 Research, approval of a spot Bitcoin ETF is important. Accordingly, it has the potential to provide a large amount of capital inflows into the cryptocurrency market. Such a confirmation will also create significant buying pressure on Bitcoin. Conversely, if the ETF application is rejected, the market will likely remain in its current state. Analysts stress that the market appears to fundamentally underestimate the positive potential of these developments.
Grayscale’s latest legal victory in its fight against the Securities and Exchange Commission (SEC) is on the agenda. Accordingly, it initially triggered a 6% market rally. But the SEC later made the move. BlackRock has withdrawn seven spot Bitcoin ETF offers from leading firms such as Fidelity, VanEck, WisdomTree, Invesco, Bitwise and Valkyrie. These ETF launches have been delayed until mid-October as a result. The Nasdaq, which is generally regarded as an indicator of market risk appetite, has reacted to these events. Accordingly, it experienced a 2% increase.
Bullish outlook for Spot ETF approvals
Lunde and Helseth point out that spot Bitcoin ETF applications are likely to be approved. Therefore, he argues that the market should adopt a bullish stance. Bloomberg analysts estimate the probability of approval this year is 75%. Despite this positive outlook, current market prices do not seem to adequately reflect this sentiment.
The report highlights that market sentiment in the crypto derivatives sector has been negative since mid-August. It is also stated that this situation is characterized by consistently low funding rates, CME base figures and next month premiums. However, analysts point out that the crypto market is extremely dynamic. He also emphasizes that sensitivity can change rapidly.
Increased volatility expectation
K33 Research analysts are also looking at the volatility of Bitcoin BTC. Accordingly, the Nasdaq states that it has decreased compared to traditional assets such as the S&P 500 and gold. Analysts predict that there will be an “explosion” in price fluctuations soon. On the other hand, it points to the potential for a more turbulent market in the future.
In summary, K33 Research believes that the cryptocurrency market is currently underestimating the positive impact of potential US spot Bitcoin ETF approvals. When we look at Kriptokoin.com, they predict a change in sentiment and an increase in market volatility in the near future.
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