According to a South Korean crypto researcher, US stock traders are having a significant impact on Bitcoin prices. Previously, Bitcoin prices were mainly influenced by Bitcoin miners and whales, but the approval of Bitcoin spot ETFs by the SEC has shifted the market dynamic towards stock market traders. The researcher claims that the price of Bitcoin is now sensitive to trends in US spot ETFs, rather than macro market factors such as interest rates, pandemics, and policies. Trading bots in Asia and elsewhere are reportedly following US stock traders and Bitcoin ETF trading patterns, causing Bitcoin prices to rise or fall during US stock market hours and repeating trends during Asian market hours.
The SEC’s decision in January to approve Bitcoin spot ETFs has been described as a watershed moment by the researcher, leading to Bitcoin spot and futures markets following similar patterns and resulting in the liquidation of long and short positions. This development could potentially attract additional institutional investors to the market, which would have a seismic effect on South Korea’s BTC market. Currently, the nation’s Bitcoin and altcoin markets are dominated by retail investors, with many institutional investors and funds expressing interest in BTC but not yet gaining access to the markets. The researcher believes that the combination of these factors and the upcoming halving event are likely to create synergies that will increase Bitcoin prices.
In addition to the influence of US stock traders on Bitcoin prices, a Deutsche Bank survey has shown a significant change in public perception of Bitcoin, with only 1% of respondents considering it a fad, down from 20% the previous year. This shift in perception may contribute to the increasing interest in Bitcoin as an investment opportunity, especially in the wake of the SEC’s approval of Bitcoin spot ETFs. The survey findings suggest a growing acceptance and recognition of Bitcoin as a legitimate asset class with long-term value potential, rather than a passing trend.
The potential for a Democratic Party majority in South Korea’s parliamentary elections on April 10 could have implications for the cryptocurrency market, as the party has promised to pressure regulators to approve South Korean Bitcoin and altcoin ETFs. If this promise is fulfilled, it could further legitimize cryptocurrencies as investment options and attract more institutional investors to the market. With the increasing influence of US stock traders and the changing perception of Bitcoin as an asset class, the cryptocurrency market in South Korea and globally may experience significant growth and development in the coming months. The combination of these factors, along with the upcoming halving event and the continued interest from institutional investors, could contribute to further increases in Bitcoin prices and a more vibrant and diverse cryptocurrency market.
