Highlights:
- Jim Bianco expresses concerns about Bitcoin ETFs’ success and traditional finance’s dominance.
- Bitcoin’s price failed to rise, even with over $12 billion in inflows.
- Critics argue Bitcoin ETFs have positively impacted price, enhancing market accessibility for investors.
Jim Bianco of Bianco Research has downplayed the success of spot Bitcoin (BTC) exchange-traded funds (ETFs). He said the massive concentration of the largest crypto in traditional finance is not “something to be celebrated.”
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Bianco pointed out that despite Bitcoin’s inflows surpassing $12 billion since its all-time high in March, its price is still down by 4%. The analyst believes Bitcoin should have reached $100,000 months ago due to bullish catalysts like the Fed’s rate cut in September, recent halving, and increased institutional involvement. However, Bitcoin has yet to achieve this level. Bitcoin’s price didn’t reach a new all-time high this week, despite record inflows from BlackRock’s iShares Bitcoin Trust (IBIT).
Bianco notes that gold’s price is higher due to ETF inflows. He explains that gold ETFs attract fresh money, but Bitcoin ETFs mostly circulate existing “on-chain or exchange money,” limiting Bitcoin’s price growth. He warned that this trend might have long-term effects on the crypto market.
As funds move from decentralized exchanges and wallets to traditional finance, it could lead to increased control by institutions and regulators.
1/6
Like you, I see the regular posts about the Spot BTC inflow records. Running out of superlatives.
They are correct. We have never seen anything like it.@JSeyff @EricBalchunas @Matt_Hougan @dotkrueger @btcjvs @fejau_inc @qthomp @Tyler_Neville_ @MikeIppolito_ @NateGeraci
— Jim Bianco (@biancoresearch) November 2, 2024
Bitcoin Enthusiasts Criticize Bianco’s Analysis
This analysis has drawn criticism from Bitcoin enthusiasts. Bitcoin maximalist Fred Krueger argued that Bianco’s statement lacks evidence, noting Bitcoin’s 65% year-to-date gain, which far outpaces gold’s performance.
Bianco argues, with no evidence whatsoever, that "BTC ETFs are just recycled money", instead of having a spectacular year "like Gold".
1. BTC is up 65% year to date
2. Gold is up only 33% year to date.
3. This is after MtGox, Germany, FTX, GBTC and DCG liquidations.Bianco,… https://t.co/fhGtHLAUQ6
— Fred Krueger (@dotkrueger) November 2, 2024
Bloomberg analyst Eric Balchunas also countered Bianco’s argument. He stated that Bitcoin ETFs are positively impacting the asset. The price growth isn’t as dramatic as some investors expected. Balchunas noted that Bitcoin has doubled in price since BlackRock’s ETF filing in early last year. This occurred despite major market disruptions and “several significant dumps.”
He credited Bitcoin’s resilience and stability to the accessibility and low-cost structure of these ETFs. They offer a regulated gateway for investors who were previously hesitant to enter the crypto market.
Balchunas dismissed the idea that Bitcoin’s price should be much higher by now. He noted that while ETFs are powerful tools, they don’t always cause instant price surges. He emphasized that brand-name ETFs like BlackRock’s could benefit Bitcoin’s mainstream adoption in the long run. However, short-term price movement may remain subdued.
Bitcoin Dominance Reaches 60 Despite Significant Price Reversal
Recently, Bitcoin’s market dominance hit 60%. It marks a significant shift in market dynamics and reverses long-standing trends in the industry. After an extended altcoin season, where investors were more optimistic about altcoins, Bitcoin has reclaimed its leading position.
Still crazy to look at #Bitcoin dominance and finally see it back at 60% after all this time.
So many battles along the way, but the journey was worth it. pic.twitter.com/yKADhx3etB
— Benjamin Cowen (@intocryptoverse) November 2, 2024
This shift occurred as altcoins continued to lose value against Bitcoin, even though Bitcoin’s price increased in USD due to its own upward movement. Reaching 60% dominance wasn’t easy, as Bitcoin faced several challenges.
Chart analysis indicates that Bitcoin recently reversed from the $70,000 mark. It failed to hold above this crucial level. This decline shows the selling pressure Bitcoin faces at higher prices. However, it doesn’t necessarily signal a breakdown in the overall bullish trend.
The price of Bitcoin slipped to the $68,000 level earlier today, reaching an intraday low of $68,369, according to data provided by CoinMarketCap. At press time, the leading cryptocurrency is down 1.80% in the past 24 hours.
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