The head of the Korbit Research Center at the Korbit crypto exchange, Kim Min-seung, has recently claimed that US stock traders are now exerting a significant influence on Bitcoin prices. In the past, prices were primarily influenced by Bitcoin miners and whales. However, according to Kim, this dynamic has shifted in recent months. He attributed this change to the Securities and Exchange Commission’s decision to approve Bitcoin spot exchange-traded funds (ETFs), which has created a new market dynamic centered on stock market traders.
Market Sensitivity to US Spot ETFs
Kim noted that analysts have observed a strong correlation between the price of Bitcoin and trends in US spot ETFs. This sensitivity has led to a situation where Bitcoin tends to rise or fall during US stock market trading hours, with similar trends being repeated during Asian market hours. This pattern suggests that the approval of BTC spot ETFs by the SEC has played a significant role in shaping the current market landscape.
Previously, macro market factors such as interest rates, pandemics, policies, and wars had a major impact on Bitcoin markets. However, Kim highlighted that the SEC’s decision in January marked a turning point. Trading bots in Asia and other regions have reportedly started following the lead of US stock traders and ETF trading patterns, further emphasizing the influence of external market dynamics on Bitcoin prices.
Future Outlook
Kim predicted that the approval of BTC spot ETFs and the upcoming halving event are likely to create synergies that will drive Bitcoin prices higher. Additionally, he foresaw an influx of institutional investors entering the market, which could have a seismic effect on South Korea’s BTC market. Currently dominated by retail investors, the entrance of institutions could significantly impact the country’s cryptocurrency landscape.
As of the latest update, the Democratic Party in South Korea was expected to secure a massive majority in the parliamentary elections. The party had promised to push for the approval of South Korean Bitcoin and altcoin ETFs, indicating a growing interest in regulatory support for cryptocurrency investments.
The evolving relationship between US stock traders and Bitcoin prices underscores the interconnected nature of global financial markets. As external factors continue to shape the cryptocurrency landscape, it is essential for market participants to stay informed and adapt to changing dynamics in order to navigate the volatile world of digital assets.
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