- MicroStrategy predicts $22 million in trading volume on launch day as Bitcoin’s historical patterns repeat themselves.
- Despite worried market sentiment, Bitcoin ETF net inflows turned positive again after a day of outflows.
Major player MicroStrategy Bitcoin [BTC] Player saw $22 million in trading volume on the ETF’s first day, likely setting a record for a leveraged ETF, Bloomberg ETF analyst Eric Balchunas first reported on Nov. 24, 2017. X (formerly Twitter).
The ETF is expected to be the most volatile among U.S. ETFs based on the 90-day volatility index, although volatility could increase further if the issuer pushes the envelope to attract investors.
While $MSTX has been volatile in the US, it is less extreme than Europe’s $3LMI LN, which has seen 90 day volatility of over 350%.
Source: Eric Balchunas/X
$MSTX’s volatility and trading volume suggest that the currency could become a major player in the ETF market and influence Bitcoin’s future price.
This has resulted in the Bitcoin ETF seeing a positive shift, with $11 million deposited, reversing a temporary outflow, as shared by Spot On Chain. X.
Source: Spot On Chain
Top of the United States Bitcoin Among ETFs, only BlackRock’s IBIT did not see a significant increase in net inflows, while Fidelity, Grayscale and Bitwise experienced notable inflows.
The ETF market is poised for continued growth, fueled by record trading volumes for MicroStrategy ETFs.
Given the large amount of Bitcoin held by MicroStrategy, it suggests that its influence will likely drive up Bitcoin prices.
BTC’s Current Cycle Reflects “Blue Years”
Bitcoin’s current cycle mirrors past “blue years” featuring a consistent pattern of two major highs and two plateauing periods.
This cycle saw strong movements from January to March, followed by a prolonged period of correction. Unlike previous cycles, this one has yet to reach a new all-time high and the correction continues.
Source: CryptoCon, TradingView
Historically, similar cycles have seen early highs (light blue circle) and troughs occur around August about once every two years, suggesting that the recent decline is typical before a rally to new highs the following year.
Despite some differences, the halving cycle theory indicates we are on track for a peak in late 2025. As the cycle progresses, new highs appear likely to be recorded.
Additionally, major banks and financial institutions around the world are increasing their Bitcoin holdings, despite current uncertain market sentiment.
Source: Alternative.me
Following the lead of these influential investors is wise. Strong buying activity and positive market indicators have traders and investors anticipating a potential rise in Bitcoin prices.
