Bitcoin ETF Retail 'Degens' Could Start Selling Their Positions At $58K, Analyst Warns
Portfolio Pulse from Khyathi Dalal
Jim Bianco of Bianco Research warns that retail 'degens' holding spot Bitcoin ETFs might start selling their positions as the average purchase price of these ETFs is between $57,000 and $58,000, close to the current BTC price. This could create significant selling pressure in the market, especially since these ETFs have acquired 8.5% of the Bitcoin supply moved in the last year. Bianco's analysis suggests a potential instability in the market due to the concentration of holdings among non-institutional investors.
May 01, 2024 | 7:18 pm
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The warning by Jim Bianco about potential selling pressure from retail 'degens' holding spot Bitcoin ETFs could lead to a short-term decrease in Bitcoin's price, especially as these ETFs hold a significant portion of the Bitcoin supply.
Given the significant holding of Bitcoin by these ETFs and the current price hovering around the average purchase price, there's a high likelihood of selling pressure if investors decide to cut losses or break even. This could lead to a short-term decrease in Bitcoin's price due to the increased supply on the market.
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