Experts from Grayscale believe that the emergence of spot ETFs on BTC may be a prerequisite for reducing the supply of the main cryptocurrency on the market. And this, analysts believe, will have a positive effect on the price of bitcoin.
Grayscale specialists recalled that another halving is expected next spring, which will entail a drop in offers from mining companies.
According to the analysts, the supply of BTC in the market is already relatively limited in anticipation of a potential influx of investors into spot ETFs. A significant part of bitcoins belongs to organizations and they may well hold on to their reserves until the BTC rate rises significantly. The analysts think that this combination of lack of liquidity and the influx of new investors can have a positive impact on the asset price.
As of December 4, the price of the first crypto coin exceeded the level of $41,000. In just 24 hours, Bitcoin rose in price by more than 10%, updating the previously recorded annual maximum.
Before this, BTC was worth above $40,000 in April last year. According to Coinmarketcap, the price of the main digital coin exceeds 41,400.
Regional Director of CommEX in Russia and the CIS Anton Toroptsev noted that the beginning week should be quite “calm in terms of the publication of economic indicators.
“The main expectations of market participants are now focused on the US Federal Reserve meeting, which will take place on December 12 and 13. Based on these optimistic expectations, Bitcoin could test the $40,000 level next week and has a chance of consolidating at this level. If he succeeds, then the next resistance level for Bitcoin will be $43,000.
The cryptocurrency may rise to this level by the end of next week on the eve of the US Federal Reserve meeting,” the analyst said.
Do you agree with the expert’s opinion?