Bitcoin, the world’s largest cryptocurrency, has experienced significant price volatility recently, and ETC Group CEO Tim Bevan attributes this to macroeconomic factors and specific market events. In an interview with Proactive’s Stephen Gunnion, Bevan noted the unexpected strength in the US economy, as indicated by recent jobs data, leading to revised expectations for interest rate cuts, which has impacted risk assets like Bitcoin.
Additionally, the movement of $2 billion worth of confiscated Bitcoin related to the Silk Road case onto a Coinbase account by the US Department of Justice (DOJ) has contributed to the market’s instability. However, Bevan views these fluctuations as part of Bitcoin’s usual trading range.
Regarding the likelihood of an Ethereum ETF in the US, Bevan indicated a negative shift, citing the SEC’s increased efforts to classify Ethereum as a security. This classification, driven by interactions with the Ethereum Foundation and the transition to proof of stake, marks a significant regulatory change and dampens the immediate prospects for an Ethereum ETF. Nonetheless, Bevan remains hopeful for developments later in the year.
Bevan also commented on the London Stock Exchange’s (LSE) decision to launch a segment for crypto ETPs, viewing it as a positive step for market legitimization. However, he critiqued the exclusion of retail investors from this segment, suggesting it could limit market liquidity and appeal. Bevan stated, ‘While the LSE’s decision to launch a segment for crypto ETPs is a positive step, the exclusion of retail investors could limit market liquidity and appeal.’
Lastly, Bevan discussed the upcoming Bitcoin halving event, a reduction in the reward for mining Bitcoin, anticipated around 20 April. He stressed that while the halving itself may not instantly affect prices, its long-term impact on supply could be significant.
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