The Introduction of spot ETF majorly drives the price of the market at any time

[Cryptomultiplier]

The introduction of spot ETFs has made sure to create a dual-edged sword for market volatility. While they bring massive capital inflows, they also concentrate immense power into fewer hands, just as the case of Michael Saylor who sold exactly 32 BTC, which amounted to roughly $2.5 million and helped make the bitcoin and crypto currencies market go into a current dip.

‎I think that the introduction of spot ETF for large institutional holders helped facilitate the rise of more whales that can manipulate and drive the daily price of the market when they move their funds or diversify or liquidate their large holdings, because from research and observation of the market, the real daily price drivers are now structural ETF flows, systemic macroeconomic liquidity shifts, and the leverage built up in the derivatives markets.
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What do you think?

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[Zaguru12]

The introduction of spot ETFs has made sure to create a dual-edged sword for market volatility. While they bring massive capital inflows, they also concentrate immense power into fewer hands, just as the case of Michael Saylor who sold exactly 32 BTC, which amounted to roughly $2.5 million and helped make the bitcoin and crypto currencies market go into a current dip.

Here we go again another person actually thinking it was Saylor and microstrategy that actually sent bitcoin into this dip. I wouldn’t deny the fact that news or fundamentals like Saylor announcement of sell can actually changes the sentiment of certain investors and traders but I still will not say this was the news that sent us into this dip because looking at the market directly this dip has been inviting for some period of time now. We were in bullish sentiment for like two months and it shouldn’t have a surprise that the dip comes because we all know that this is more of bearish year.

Yes ETF approval brought adoption which brought more buyers and then obviously more holders to which is the driving force for a volatility reduction

[rat03gopoh]

Yes ETF approval brought adoption which brought more buyers and then obviously more holders to which is the driving force for a volatility reduction

Institutional adoption doesn't eliminate the risk of high volatility, in my opinion. Even if they're exposed to systemic risk, they can make unilateral decisions, including forcibly liquidating Bitcoin reserves in custodial vaults.

[r_victory]

That makes sense, but I don't think ETFs alone can cause the damage we've recently seen with the general cryptocurrency crash, although not all of them fell. If you calculate the sale made by Strategy, $2.5 million isn't that much capital compared to the overall market value. I believe the drop caused by the sale of 32 BTC has more to do with the narrative than the value itself; after all, Michael Saylor is an influential figure who said BTC would never be sold and suddenly sold 32… It's the kind of action that causes distrust and even panic in the market.