Today the ETF impact returns to the price of bitcoin
Bitcoin’s volatility, in any sense, could increase due to greater trading volume.
The market is waiting for announcements or statements from Donald Trump about bitcoin.
With the reopening of markets in the United States after the national holiday, bitcoin ETFs are operating again, generating expectations about their impact on the price of the digital currency.
January 9 was declared a Day of National Mourning. for the death of Jimmy Carter, former American president. On that day, both the markets and several federal institutions closed their doors.
This return occurs after a period of negative performance that affected both funds and the value of bitcoin in the market.
On January 8, bitcoin ETFs recorded capital outflows of $580 million, marking the second worst day in their history. These massive sales took the price of bitcoin to $91,000.
However, in the last 24 hours, The crypto asset showed a slight recoveryreaching $95,000, as seen in the following chart. TradingView.
The performance of ETFs will be key in the coming days. If the funds generate demand, the managers of these instruments will have to acquire more bitcoin to back their assets, which could positively influence the price due to the dynamics of supply and demand.
Expectations for the “Trump effect”
Donald Trump’s upcoming inauguration into his second term, scheduled for January 20, adds another layer of volatility to the market.
The policies announced by Trump, such as the creation of a strategic reserve based on bitcoin and the deregulation of the sector, have generated speculation about a possible boost to the price of the digital currency.
The “Trump effect” already manifested itself on November 5, when bitcoin increased 8% in a single day, reaching $75,300 while the election results were known. This pattern could repeat itself if Trump makes new bitcoin-related announcements in the coming weeks..
In fact, Trump takes credit for the fact that BTC reached the $100,000 milestone at the beginning of last December.
The restart of operations on Wall Street and the proximity of political changes in the United States mark a period of high expectations for bitcoin. The ETFs and the decisions of the new government could become determining factors for the direction of the market. For now, the financial community and cryptocurrency investors are keeping their eyes fixed on these key events.
