From Nasdaq Inc.:

Bitcoin’s rise following the approval of a spot Bitcoin exchange-traded fund did not last long, as the digital currency has been on a downtrend since topping just under $49,000. A fund manager has predicted that Bitcoin could plunge much lower due to a lack of institutional interest and warnings from influential industry figures.

Despite the recent launch of 11 new spot Bitcoin ETFs, the funds only saw a modest $1 billion in net inflows, far less than what Bitcoin bulls were expecting. Grayscale Bitcoin Trust, which charges higher fees, experienced $2.3 billion in net outflows after the ETF launch. Analysts are warning that Bitcoin could face a similar drastic drop as it did in 2021, potentially falling to around $12,000.

The spot Bitcoin ETF launch turned out to be a “buy-the-rumor, sell-the-news” event, resulting in a pullback that matched the risk aversion seen in financial markets in January. Bitcoin saw a strong performance in 2023, rallying about 155%. While some investors hoped that flows out of Grayscale Bitcoin Trust would boost the price of Bitcoin, the effect was net neutral as only fund reallocation occurred. On Sunday, Bitcoin traded up 0.64% at $41,855.37.

Crypto analysts and investors had anticipated that redemptions from Grayscale Bitcoin Trust following spot Bitcoin ETF approvals would be directed into cheaper ETFs. However, the effect was net neutral. Unlike some bearish analysts, Bitcoin bulls such as Cathie Wood remain very positive about Bitcoin’s trajectory, with Wood expecting the cryptocurrency to hit $1.5 million by 2030.



Read more: Bitcoin Could Be In For A 70% Plunge, Says Fund Manager, After Apex Crypto Fails To Take Off On Spot ETF Launch: ‘We Have Seen This Move Before’