Bitcoin plummeted after breaking through its all-time high, but heralded a good signal for 2021?
On january 4th bitcoin, after its biggest correction in four months, fell 9% after rising for seven days and hitting a record high of $34,347 on sunday, falling below the $30,000 mark to $28,000, and is now up close to $31,000.
Stack Funds co-founder and coo Matthew Dibb told CoinDesk：” bitcoin was in the midst of a much-needed reset .” Jason Deane, an analyst at the cryptocurrency consultancy Quantum Economics, said :” the most likely explanation is short-term profit taking by traders, not long-term investors .” “Given the current mood and appetite of Bitcoin, any correction seems likely to be short-lived .”
Eric Demuth, chief executive Bitpanda digital asset brokerage, said :” it is undeniable that bitcoin has proved itself to be a mature and best performing asset .” “As more and more institutional investors begin to embrace digital currencies, the value of Bitcoin grew by more than 300% last year .” “We see that it is becoming part of the recommended allocation strategy for institutional investors and investment banks .”
The head Diginex sales and trading at cryptocurrency Matt Blom wrote in his daily newsletter sunday that it seems clear that “there is little sign that the rally is over .” “Bitcoin started this year exactly the same as it did at the end of last year ,.”
30 December 2020, Exchange – traded fund heavyweight VanEck under unknown circumstances, Submit a S-1 registration statement for a new Bitcoin ETF called VanEck Bitcoin Trust. Unlike VanEck Bitcoin futures ETF application submitted in 2017, new ETF will hold physical bitcoin. A Wall Street expert in cryptocurrency, This key distinction may create a greater imbalance between demand and supply of Bitcoin, rather than the recent imbalance that led to soaring prices.
“As Bitcoin prices reach new heights, one of the questions is whether 2021 will be the year the Securities and Exchange Commission finally approved the Bitcoin Exchange Fund, which will make it easy for anyone to buy encrypted currency because they can buy stocks. According to us, the ETF of tracking virtual currencies could have a huge impact on their growth as asset classes and the industries around them .” BITG analyst Mark Palmer said.
Mark Palmer warned, however, that it is far from certain that Bitcoin ETF. will be launched this year or any year The Securities and Exchange Commission (SEC) has rejected applications to create bitcoin ETF on the grounds of high likelihood of fraud and market manipulation. Palmer points out that on one day in August 2018 alone, SEC rejected nine Bitcoin ETF applications. Palmer believes that the astonishing rise in bitcoin in the past few months may eventually change the mood inside the SEC.
“Several of the industry ETF we talked to are optimistic about the possibility of regulatory approval in the coming year, agreeing that the approval of the Securities and Exchange Commission (SEC) could be an important catalyst for the currency. And by increasing mainstream acceptance to expand the space .” Mark Palmer added.