- Bitcoin decouples from S&P Index, says BitMEX co-founder Arthur Hayes.
- Spot Bitcoin ETFs launched in US after SEC approval on January 11.
- Bitcoin price drops, erasing recent gains; ETFs attract over a billion dollars.
While Bitcoin remains in a downtrend, Arthur Hayes, the co-founder of BitMEX, has noted that the leading digital currency is no longer moving in tandem with the S&P Index, which measures the stock prices of the biggest companies in the US market.
Hayes mentioned in a new tweet on social media platform X (previously known as Twitter) that these modifications began after the introduction of spot Bitcoin exchange-traded funds (ETF) in the United States. The eagerly awaited ETFs were released on January 11, after the US Securities and Exchange Commission (SEC) approved all outstanding applications.
Hayes points out that the differing trends in BTC and S&P prices suggest varying anticipations for the future. Citing a chart that displays these price trends, Hayes mentioned, “BTC suggests that there may be future difficulties for the dollar.”
The founder mentioned that specific indicators due to be released at the end of the month will reveal if there is potential for a downward trend. “The upcoming announcement on January 31 regarding the US Treasury refunding will be the next indicator,” Hayes stated.
Following the intermittent increase subsequent to the approval of the ETF, Bitcoin experienced a significant drop in its value. This reduction in the price of digital currency erased the profits that the leading cryptocurrency had accumulated in the preceding weeks. Currently, as per the data from CoinMarketCap, Bitcoin’s trading price is $40,933.
Even though Bitcoin has been performing poorly, the newly introduced Exchange-Traded Funds (ETFs) still attract investors’ attention. By the end of last week’s trading session, it was previously reported that two of these ETFs had collected more than a billion dollars within that week. It is widely anticipated that these ETFs will keep experiencing an influx of investment over the next few weeks.
Contrary to what analysts had anticipated, Bitcoin’s response to the ETF’s approval was not as expected. The ETF debuts, which formalized Bitcoin’s status as a conventional asset, were predicted to boost the cryptocurrency’s value. Yet, despite this, analysts maintain their forecasts that Bitcoin will reach a new peak value of approximately $100,000 by the end of the year.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
