Will Bitcoin Crash?

Many traders are wondering if Bitcoin will crash soon. Let’s answer this main question in the first sentence. Yes, bitcoin will likely crash, and by how much might surprise you. Here’s a comprehensive guide to understanding Bitcoin price actions and the mechanisms in play.

ETF inception inflated Bitcoin pricesWhen Bitcoin ETFs first entered the financial scene, they unlocked a doorway to regulated  access for institutional investors. This wasn't merely an expansion of the market—it was a catalyst for an explosive rise in Bitcoin's price, propelling it to the staggering $100K mark we see today. But this boost in BTC volume was a power play, not a natural increase, which opened the door to market manipulation.

Here's the Bitcoin ETF mechanism at play: as institutional investors poured capital into Bitcoin ETFs, the firms managing these ETFs were compelled to acquire substantial amounts of Bitcoin to back the newly issued shares.

Take, for example, Grayscale’s Bitcoin Trust (GBTC), which now holds a commanding lead with assets under management worth about $22.7 billion. This single ETF's demand for Bitcoin significantly influenced the market price. Close on its heels is the iShares Bitcoin Trust (IBIT) managed by BlackRock, with $6.6 billion in assets. And not to be overlooked, Fidelity's Wise Origin Bitcoin Fund (FBTC), which controls around $4.7 billion.

These figures are a testament to the massive institutional muscle that now flows through Bitcoin, much of it indirectly from ordinary stock market investors whose portfolios include these ETFs.

Follow this link for more: https://www.exness.com/blog/will-bitcoin-crash/