Bitcoin Experiences Price Swings With ETFs, But Analyst Foresees Long-Term Volatility Dampening: 'Will Likely Ease As Funding Rates Normalize'
Portfolio Pulse from Benzinga Neuro
Bitcoin's volatility has increased despite the introduction of ETFs, contrary to expectations of market stabilization. The volatility is attributed to leveraged trading and the anticipation of the Bitcoin halving event. Analysts predict that volatility will decrease as funding rates normalize, but caution about potential steep corrections. BlackRock's iShares Bitcoin ETF (IBIT) has significantly impacted the market by amassing a large Bitcoin holding, surpassing MicroStrategy's holdings.
March 12, 2024 | 7:04 am
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BlackRock's iShares Bitcoin ETF (IBIT) has amassed 195,985 BTC, surpassing MicroStrategy in Bitcoin holdings, indicating a significant market impact and potential reshaping of Bitcoin investment strategies.
The rapid accumulation of Bitcoin by IBIT suggests a strong investor interest and confidence in the ETF as a vehicle for Bitcoin investment. This could lead to increased demand for IBIT shares, potentially driving up its price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100