Bitcoin ETF Approval: Fueling Bullish Momentum?

[Minecache]

Many people are underestimating the impact of ETFs on bitcoin, but if you look back at the history of gold, you will see how gold skyrocketed after the gold ETF was approved. I also believe that the impact of an ETF on bitcoin will be huge and very significant on bitcoin price.

If it doesn't have any impact on the market then why is the entire market bullish and paying attention to ETF related news? You can also see that just 1 fake news release in less than 1 hour can make the bitcoin price increase a lot, but what do you think will happen if it is real news?

There is no doubt that approval of ETF will fuel the positive trend of Bitcoin.  It may not directly create demand but it can impact the market sentiment and can even give a huge impact to Bitcoin price if the ETF gain popularity and trust of masses.

David Waugh stated in an article that ETF can serve as a connection for financial professionals who were previously hesitant or unprepared to enter the crypto space which could positively impact Bitcoin.

I know that comparing gold ETFs and bitcoin ETFs is not entirely accurate, but I think there will be a psychological impact on the market as you said, which will create extremely strong Fomo and push bitcoin prices up. That's why I'm so bullish on ETFs. But we should also be careful in everything, we have a saying "buy rumors, sell the truth", if ETF is approved this year there will also be a big trap attached. I mean when the news of an approved ETF comes out, the market will Fomo and that's when the market makers will take profits. No matter how great the demand for bitcoin is, this market is still heavily manipulated, so we should be more careful.

[dragonvslinux]

I get the impression to some degree that the current re-test of $30K is based on the idea than an ETF could still be approved soon, after the previous fake-news pump. The latter seemed to remind people that it remains possible an ETF will be approved soon, even if I find it unlikely. This also means that all it will take is for another SEC delay or some negative news for prices to return to the lows of the range imo.

I very much believe that if it weren't for the fake ETF news pump price would still be between $25K and $28K, even if that remains just a theory. I'm not convinced the XRP news has anything to do with Bitcoin's price movement, as in the past we've seen XRP pump with Bitcoin remaining stable in such scenarios. Currently Bitcoin's price as well as market dominance is increasing together, so seems unrelated.

If anything I'd say that Bitcoin's market dominance moving back above the 200 Week MA for the first time since March 2021 is the more significant factor here and is causing more shitcoin liquidity to flow back into Bitcoin, as opposed to any new money coming in. Some of the large cap altcoins (like ETH/BNB) with relatively high liquidity are very much on a knife edge against BTC or otherwise breaking down for example.

While Bitcoin's price remains very much range-bound and has been for 7 months now, it's market dominance is very much breaking out again and at it's highest level in over 2.5 years.