Despite ETF net inflows, ETH prices continue to fall because ETF trading volume is relatively small compared to the overall market and cannot determine the overall market trend. Many ET investors prefer long-term holdings, and their purchases reduce market liquidity. However, low liquidity does not necessarily mean price increases. In a low-liquidity environment, fewer sell-offs lead to lower price volatility. The stability of BTC prices is partly due to the large amount of locked-up circulation by ETFs, which stabilizes market prices.
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The recent decline in BTC may be attributed to factors such as Grayscale selling pressure and Japan's interest rate hike, but they mainly affect sentiment. Japan's interest rate hike is weak and has not triggered asset reflow, so it is not considered bearish. The performance of the US stock market indicates that the market is not fully pessimistic.
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There is survivor bias in this viewpoint. Holding coins for profit is a phenomenon during price increases, while few can hold BTC during declines. Miners have a higher fault tolerance than spot traders, and the industry has matured. Mining costs are naturally lower than spot prices, and mining equipment can recoup value during poor market conditions. Mining is the lowest-cost channel for acquiring BTC.
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