A Fidelity expert calls the current BTC current price a “hangover” rather than an overall trend reversal following the launch of the spot BTC-ETF.
Jurrien Timmer, director of Global Macro Fidelity, said for
Despite analysts expecting the BTC price to reverse towards the $32,000-$38,000 range, Timmer expects the recent gains to consolidate.
“The short-term question is whether now is the time to sell news. “Now that the critical moment has arrived, it will take some time to consolidate recent gains.”
Jurrien Timmer, Director, Global Macro Fidelity
According to Trimmer, Bitcoin’s current price is reasonable and will depend on how much the network grows, real interest rates and the long-term outlook for the economy looks rosy.
Moreover, despite the rally stalling, many asset managers continue to hold significant net long positions in the Bitcoin futures market.
Last week, the U.S. Securities and Exchange Commission (SEC) approved the launch of 11 exchange-traded funds (ETFs) that invest directly in Bitcoin. However, despite the hype, the BTC price did not support the positive news and, at the time of writing, is down 7% over the past week to $42,800.
Meanwhile, Bitcoin spot ETF trading volume in the U.S. is now close to $10 billion, according to data from Bloomberg analyst James Seyffart.