Ethereum just had its spot ETF approved in the US yesterday and today it is dumping like hell. Had I held my long on it I'd be close to liquidation right now... Why isn't ETH pumping despite the ETF approval? Well, I guess it is simply following the broad market.
Recently Mt.Gox victims have started getting their paybacks through exchanges such as Bitstamp, Kraken and others and some of the ones getting their long-awaited coins are probably selling pushing the market down... Or not.
The repayments are being made in BTC and BCH and if you compare these two with ETH when it comes to recent price action you will see that ETH is doing a bit worse than the other two. There's one thing that comes to my mind: "buy the rumor sell the news". This can be the case for ETH's poor performance right after the ETF approval.
Speculators who have accumulated ETH when the rumor came out regarding the ETF are probably dumping coins right now which would be the cause for the poor performance we are seeing for Vitalik's coin right after the ETF launch. There are some "full swing bull market vibes" that should not be overlooked though.
Ferrari has just announced that it is accepting Bitcoin and other crypto for its supercars in Europe just a few months after it made this move in the US.
"The entry into the European market follows the successful launch of this alternative payment system in the United States less than a year ago, to support dealers in better addressing the evolving needs of its clients," the company said, adding that most dealers in the region have already adopted the solution or are in the process of doing so, according to Reuters.
Ferrari partnered with BitPay as its cryptocurrency payment processor for the U.S. launch, accepting payments in bitcoin, ether and the USDC stablecoin, with crypto payments to dealers immediately converted into fiat currency to “protect them from price swings.”
However, it remains unclear which crypto payment processors Ferrari will use in Europe and other regions.
[source](However, it remains unclear which crypto payment processors Ferrari will use in Europe and other regions.)
Tesla made a similar move in 2021, and if I remember correctly, soon after Tesla announced that it would offer its clients Teslas for bitcoins, the price of BTC simply skyrocketed. The difference between the quite similar moves coming from both companies is that Ferrari is instantly dumping the BTC it receives for its cars from clients.
No BTC will be held in reserves. On top of that, Tesla is still holding about 100,000 BTC, which says a lot about Elon's approach towards crypto. My take is that the market has not reacted as aggressively regarding Ferrari's offer as it did when Tesla came up with such an announcement just because we have a precedent.
Bitcoin needs more and more powerful stimuli to move, and the Bitcoin conference taking place in just a few days from now, where Donald Trump is also supposed to participate, might be such a stimulus. If Trump will somehow hint at willing to turn BTC into a reserve asset for the US treasury, then we should expect fireworks.
Otherwise, we will have to wait for miners to capitulate, and Mt.Gox to finish its repayments, which automatically implies a quite significant sell-off for BTC. In every cycle, the real parabolic run started at the end of every halving year. 2024 might not be any different.
The top is not in, IMO... I don't know how close Bitcoin is to a top and how long it will take it to get there, but there is still more room for growth. However, the recent news regarding Ferrari accepting Bitcoin and crypto for their supercars in the US and EU reminds me of Lamborghini in 2017, which did pretty much the same in the US. We were close to the top when that happened...
Just saying...
Thanks for your attention,
Adrian