This year, spot Bitcoin ETFs are in a bearish market after falling by more than 20% since their highs. Blackrock’s IBIT is now at $45, Fidelity FBTC, and Ark Invest ARKB are both down to $70 or $80.
In the last few months, these ETFs experienced significant losses and outflows. IBIT has net assets of about $47 billion. FBTC, ARKB, and ARKB each have $3.7 and $15 billion. Grayscale’s GBTC is worth $15.5 billion. These are four reasons to buy spot Bitcoin ETFs or use dollar cost average (DCA).
The top 4 reasons for buying DCA IBIT or FBTC and ARKB
You should buy these Bitcoin spot ETFs for several reasons: Bitcoin has still strong fundamentals; BTC entered a bearish market in the past, and recessions are good for cryptocurrency.
The Bitcoin price is in a bearish market.
First, it is important to note that Bitcoin isn’t the first cryptocurrency that has been in a bearish market. It fell by 32 percent from March’s peak to August, last year.
Bitcoin has also fallen by 77% between its peak in 2021, and its low point in 2022. Many similar crashes have occurred in the past.
Bitcoin’s rise to its record-breaking high of $109,300 in this year was not a linear event. This coin’s rise and fall has been temporary.
BTC’s fundamentals are strong
Bitcoin’s price may rise in the future due to its strong fundamentals. Demand and supply are the most crucial fundamentals.
Bitcoin is unique in that it has a limited supply. There are 21 million coins. The current supply of Bitcoins is over 19,83. Millions have been stolen. Bitcoin miners will now be fighting over just 1,17 million bitcoins.
Bitcoin also halves every four years which makes mining more difficult. This will all happen when investors buy these assets. All spot Bitcoin ETFs have brought in more than $35 billion. These fundamentals are what will continue to support Bitcoin ETFs such as IBIT, GBTC, FBTC, and ARKB.
Crypto Crash: $1 Billion in Liquidations: Time to Buy the Dip
Bitcoin Price Break and Retest Pattern
Another reason that the IBIT ETF, FBTC and ARKB will perform well is because Bitcoin is doing a pattern of break-and-retest, a common continuation signal. It is when an asset crosses over a major resistance level and then tests it again. It crossed this resistance a few month ago at $73,600 and now is dropping to test it. It is noteworthy that this resistance was at its highest in March of last year.
Source: TradingView
Bitcoin ETFs are boosted by recession
Another catalyst that could drive spot Bitcoin ETFs would be the possibility of a US recession in 2018 due to Trump’s tariffs and the impending government shutdown.
Cryptocurrencies are a great investment if there is a recession, because the Federal Reserve will lower its interest rates.
The Federal Reserve cut interest rates down to zero during the Pandemic. The stock market also surged following the Global Financial Crisis after the Fed implemented quantitative easing and slashed interest rates.
The Federal Reserve will print cash to invest in mortgage-backed and government securities. When the Fed implements QE and cuts rates, crypto and other risky investments do well.
The post IBIT, FBTC and ARKB: Four reasons to Buy Bitcoin ETF Dip appeared first on ICD
This site is for entertainment only. Click here to read more
