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Bitcoin Market Influence by US Stock Traders
A South Korean crypto researcher, Kim Min-seung from the Korbit Research Center, has suggested that US stock traders are now playing a significant role in influencing Bitcoin (BTC) prices. This shift marks a departure from the previous influence primarily exerted by Bitcoin miners and whales.
Changing Market Dynamics
Kim highlighted that the approval of Bitcoin spot exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) has introduced a new dynamic to the market. This shift has led to a focus on stock market traders as key influencers of Bitcoin prices.
Impact of Macro Market Factors
Previously, macro market factors such as interest rates, pandemics, policies, and wars had a substantial impact on BTC markets. However, with the recent SEC decision, trading patterns have started to follow US stock traders and Bitcoin ETF movements, particularly during trading hours.
Bitcoin Price Predictions
Analysts predict that the approval of BTC spot ETFs will continue to drive market trends, with Bitcoin’s upcoming “halving” event also expected to contribute to potential price increases. Kim suggested that these factors, combined with the entry of additional institutions into the market, could lead to a surge in Bitcoin prices.
Institutional Inflow and Market Impact
The anticipated entry of more institutions into the South Korean market could have a significant impact, especially considering the current dominance of retail investors in Bitcoin and altcoin markets. Kim foresees a potential shift in market dynamics with the involvement of institutional investors.
Political Landscape and Market Expectations
Against the backdrop of the South Korean parliamentary elections, where the Democratic Party is expected to secure a substantial majority, there are expectations for regulatory support for South Korean Bitcoin and altcoin ETFs. This political scenario could further influence the cryptocurrency market in the region.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
