Bitcoin's recent price volatility has been attributed to a combination of macroeconomic factors and specific market events by ETC Group CEO Tim Bevan. The unexpected strength in the US economy, as evidenced by recent jobs data, has led to revised expectations for interest rate cuts, impacting risk assets such as Bitcoin. Additionally, the US Department of Justice's movement of $2 billion worth of confiscated Bitcoin related to the Silk Road case onto a Coinbase account has further contributed to market instability. Despite these fluctuations, Bevan considers them within Bitcoin's usual trading range.
On the topic of Ethereum ETFs in the US, Bevan noted a negative shift in prospects due to the SEC's increased efforts to classify Ethereum as a security. This regulatory stance, influenced by interactions with the Ethereum Foundation and the network's transition to proof of stake, represents a significant change and diminishes the likelihood of an Ethereum ETF in the near term. However, Bevan remains optimistic about potential developments later in the year.
The London Stock Exchange's (LSE) initiative to launch a segment for crypto ETPs was viewed by Bevan as a positive step towards market legitimization. However, he criticized the exclusion of retail investors from this segment, arguing that it could restrict market liquidity and appeal. 'While the LSE's decision to launch a segment for crypto ETPs is a positive step, the exclusion of retail investors could limit market liquidity and appeal,' Bevan stated.
Looking ahead, Bevan touched on the upcoming Bitcoin halving event, expected around 20 April, which will reduce the reward for mining Bitcoin. He emphasized that while the halving may not have an immediate effect on prices, its long-term impact on supply could be significant, underscoring the event's importance for the cryptocurrency market.
