Experts Warn to Exercise Care as Bitcoin Surpasses $66,000!
Bitcoin (BTC) has seen a significant rise towards the $66,000 mark, contributing to the ongoing turbulence in the cryptocurrency industry. Despite signs of consolidation, market analysts predict further volatility in the future.
Semir Gabeljic, the Director of Pythagoras Investments Capital Formation, highlighted the recent fluctuations in Bitcoin, noting a 10% drop earlier this week. He attributed this volatility to the outflows of approximately $300 million from Grayscale Bitcoin Trust (GBTC), a spot Bitcoin ETF, on March 20. Gabeljic also mentioned that such declines are common before Bitcoin halving events and expects more volatility leading up to the next halving.
A market analysis by QCP Capital, based in Singapore, indicated that Bitcoin and Ethereum are trading within a relatively narrow range. They suggested the possibility of a market breakout over the weekend, following the previous week’s pre-FOMC (Federal Open Market Committee) volatility. Regarding Ethereum (ETH), QCP Capital observed a widening decline in the Grayscale ETH Trust, and they noted diminished expectations for the approval of a spot Ethereum ETF in the near future.
Prediction markets on platforms such as Polymarket show skepticism regarding the approval of an Ethereum ETF by May 31, currently trading at a 21% probability. Despite these fluctuations and regulatory scrutiny, market participants remain cautious and anticipate further volatility in the short term.
Analysts advise closely monitoring key developments to better assess the direction of the cryptocurrency market in the upcoming weeks.
*This analysis does not constitute investment advice.