DANGER!!! Bitcoin Threatened With 70% Collapse: Is This The End Of The Crypto King?

When hopes of launching a spot Bitcoin ETF failed to trigger a price surge, a fund manager warned that Bitcoin could experience a drastic decline. Recent analysis shows that Bitcoin, which failed to capitalize on the momentum, is now on the verge of a decline that may erase most of its gains last year.

Early Warning from Fund Managers

Gary Black, Managing Partner of Future Fund, predicts that Bitcoin will lose most of the 184% gain it achieved over the past year. He attributed these gloomy predictions to the expected lack of institutional interest and warnings from well-known investors like Warren Buffett as well as financial industry veterans like JPMorgan 's Jamie Dimon about Bitcoin's lack of intrinsic value.

After the launch of 11 new spot Bitcoin ETFs, these funds saw only $1 billion in net inflows, far below Bitcoin enthusiasts' expectations. This does not include the $2.3 billion net outflow from the Grayscale Bitcoin Trust (NYSE: GBTC ), which has higher fees.

Bitcoin Spot ETF: Success or Failure?

The launch of a spot Bitcoin ETF turned out to be a “buy the rumour, sell the news” event. Withdrawals from GBTC reached more than $1.6 billion in the first four days following the approval of the spot Bitcoin ETF.
However, instead of increasing the price of Bitcoin , this reallocation of funds had a neutral impact. On the other hand, Bitcoin managed to outperform Silver in capital inflows, becoming the second largest commodity. However, the success of ETFs was unable to trigger a rally in asset prices, with Bitcoin's dominance declining and altcoins experiencing an increase.

Technical Analysis and Market Impact

Technical analysis shows that Bitcoin price continues to decline, with a drop below the support of the 50-day exponential moving average. If Bitcoin price closes above the 50-day exponential moving average, there is a possibility of price recovery.
High Open Interest is usually associated with greater liquidity and the influx of new capital into the market. Meanwhile, consistent and positive funding rates indicate bullish sentiment among market participants.

Closing Paragraph

With mixed predictions, the crypto market is now at a crossroads. While some analysts remain optimistic about Bitcoin's future, others warn of the potential for a significant downturn. Only time will tell whether Bitcoin will rise or continue to decline.