Despite the recent success of spot exchange-traded funds (ETFs) for Bitcoin, observers and analysts are cautioning that the downside risks for the cryptocurrency still persist. According to one firm, on-chain metrics and indicators are indicating that the price correction may not be over yet, casting doubt on the possibility of a new rally. While spot ETFs have been hailed as a milestone for the crypto industry, with billions of dollars pouring into these investment vehicles that track the price of Bitcoin directly, experts believe that the overall market sentiment is still cautious. They point to data such as the number of active addresses on the Bitcoin network, which has been declining steadily since Bitcoin reached its all-time high in October. Additionally, the daily transaction volume of Bitcoin has also witnessed a decline, which could be a potential indicator of decreased activity in the market. These factors combined suggest that investors should remain wary of potential downsides in the near future.
In conclusion, while the early success of spot ETFs for Bitcoin is undoubtedly a positive development for the crypto industry, it’s important to keep in mind that the downside risks for Bitcoin still loom large. On-chain metrics and indicators are signaling that a price correction may not be over yet, indicating potential challenges for a new rally. As always, caution and careful observation of the market are essential for investors in the crypto space.
