The debut of Bitcoin ETF in NYSE has triggered bitcoin price drastically to reach an ATH

After making its strong debut in the US exchange-traded fund investing, bitcoin price has breached its own record and is rallying above the US$66,000 mark for the first time in history. The cryptocurrency price has gone up by over 3.1% since Bitcoin ETF was announced. Ethereum on the other hand is also following bitcoin's trend and is keeping a good pace in the digital currency market.

Bitcoin price has breached its own previous all-time-high in April when the digital token was traded for over US$63,000. However, before reaching this new record high, bitcoin almost touched a death cross, collapsing to below US$30,000 in June over heavy criticism on its energy consumption. Elon Musk, the CEO of Tesla and crypto enthusiast announced that the company won't accept bitcoin payments because of its impact on global climate change. China followed the suit by initially rolling out a mining ban and later, a blanket ban on the cryptocurrency market. Although this scathed the bitcoin price drastically, the digital token gave an enormous comeback with its bitcoin ETF. The bitcoin ETF listed in the US exchange became the second-most traded find on record in a matter of hours. Over 24 million shares in the ProShares Bitcoin Strategy ETF, trading under the ticker BITO, changed hands on the first day of its debut. With an overall transaction and exchange rate at US$1 billion, Bitcoin ETF's debut was just behind BlackRock carbon fund so far.

Exploring the Dominance of Bitcoin ETF

This is not the first time Bitcoin ETF has made its official debut in the centralized exchange. Countries like Canada have already launched bitcoin ETFs in the recent past, but this is US's first attempt to bring inclusion to the cryptocurrency market. The move will support many passive funds including savings accounts and retirement funds to start buying bitcoin.

At a time when Bitcoin ETF has changed things upside down, let's look at its basics and how it has worked so far. Bitcoin ETFs or Bitcoin exchange-traded funds are funds that can be bought and sold on exchanges similar to stocks. Without owning the asset, investors can get their hand on good profits as ETF traders.

"The launch of the first bitcoin ETF on NYSE is a moment of reckoning for the global crypto economy and the world's oldest cryptocurrency. Bitcoin is witnessing its meteoric rise owing to the euphoria around the ETF debut and is expected to touch the US$100,000 mark by the end of this year. The debut of bitcoin ETF marks the beginning of the democratization of digital assets. Bitcoin ETF will provide immense flexibility to investors as it can be traded throughout the trading session and will act as a catalyst in the growth of crypto assets. We are optimistic that more crypto-based ETFs will get listed on global exchanges which will enable investors from every country/region to become a part of the crypto growth story," said Shivam Thakral, CEO of BuyUcoin.

Most importantly, the listing has had a big impact on the bitcoin price and its market capitalization. Jay Hao, CEO of cryptocurrency exchange OKEx.com, said, "Bitcoin creating a new all-time high indicates wider acceptance of crypto assets across the globe. The listing of the first bitcoin futures ETF is a big leap of faith for crypto investors as it took eight long years to get the final approval from US securities. Bitcoin futures ETF will open up new avenues for investors to create long-term sustainable wealth and inflation proof. It will be wise to say that digital assets have finally arrived on a global stage and it will change the way investments and monetary transactions are done, forever. As we speak, the bitcoin market cap has touched $2.5 trillion, another new all-time high that is expected to boost the confidence of institutional and retail investors, globally. The inflow of investments from institutions have also played a major role in creating the record high."

What Can We Expect from the Surging Bitcoin Price Now?

Only two things happen when bitcoin reaches its all-time high. One is a sudden price fall due to various circumstantial and market differences and the other is another new ATH.

If we look at history, every time bitcoin has reached a record price, it is immediately hit by a major price fall. We can take 2017 and 2021 as examples. After reaching US$18,000 in December 2017, the digital token's value crumbled to US4,000 by the end of 2018. The same scenario repeated in 2021 when the bitcoin price reached a record US$63,000 in mid-April only to fall back to US$30,000 by June.

While fluctuation and volatility are very normal in the cryptocurrency market, many experts predict that bitcoin prices will drastically go up in the coming days and might even reach US$100,000 before the end of 2022. For a long time, they have been insisting on institutional money being the next bitcoin trigger, which could further add credibility to the trading. Since that has come to effect currently, there are high chances that bitcoin could breach its much-expected mark in the coming months.