Bitcoin Struggles to Maintain Momentum Post-ETF Launch: What’s Next?
The launch of Bitcoin spot ETFs was met with great enthusiasm, with hopes that they would attract significant institutional interest and send Bitcoin’s price soaring.
However, since the start of 2024, Bitcoin has struggled to gain consistent momentum, leaving many to wonder whether the market had overestimated the impact of the ETFs.
Looking back at market history, particularly the performance of the Nasdaq-100 ETF (QQQ) after its 1999 launch, some analysts, like Benjamin Cowen, have drawn parallels. The QQQ ETF hit its peak 54 weeks after launching, which coincides closely with Bitcoin’s peak, suggesting that the market may have followed a similar trajectory.
A key factor influencing Bitcoin’s current performance has been the rise of memecoins, which diverted investor funds away from Bitcoin. Many retail investors, enticed by the excitement surrounding these new tokens, saw their investments dwindle as the memecoin bubble burst. This pattern mirrors previous speculative rallies where assets experience fleeting surges before falling back down.
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Bitcoin’s dominance has risen dramatically, from 38% to 64%, reflecting a shift in investor confidence back toward Bitcoin as altcoins lose their appeal. However, while ETFs have made Bitcoin more accessible to mainstream investors, there are growing concerns about how they may impact the cryptocurrency’s decentralized nature, potentially opening the door for institutional control over its supply.
Drawing comparisons to the 1970s, some analysts predict that Bitcoin may be entering what is known as a “left-translated cycle.” In this scenario, the market peaks early, followed by a prolonged period of bearish conditions. If Bitcoin falls below $70,000 in early 2025, it may signal such a cycle, with a brief rally before further declines. If it holds above that level, Bitcoin could still be poised for further growth.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
