As a reminder, ETF stands for “exchange-traded fund”, which can consist of a variety of assets. We wrote more about this topic in a separate article. The latter is presented as answers to the most common questions about this investment vehicle.

What will happen to Bitcoin and other cryptocurrencies

So, why is Grayscale’s ETF so important? As a reminder, last year the SEC already cleared several Bitcoin ETFs for trading, but all of them are based on derivative trading instruments represented by futures on the major cryptocurrency, rather than on the cryptocurrency itself. Such ETFs are potentially volatile, as they often trade on leverage, which can lead to a cascade of position liquidations.

Bitcoin still has a long way to go to the $100,000 line

As a reminder, spot trading is trading the underlying asset itself, i.e. Bitcoin in this case. In it, market players can open positions without leverage, i.e., borrowed funds from the exchange. In futures trading, it is also possible to trade without leverage, but the mere fact that such an option exists means that borrowed funds will still be used.

Because of this fact, while previous ETFs were a very positive development for the crypto industry as a whole, they still failed to meet all the demands of large investors for digital assets. That said, a spot ETF for Bitcoin has been a welcome development for the past few years.

Cryptographer Adam Beck

Overall, Adam Back described his prediction of what’s happening in the various markets with the following tweet published by the news outlet CryptoPotato.

Everyone has their own predictions about the macro economy, here’s mine. Stock market trading coincides with the US election, trader sentiment uncertainty rises, money starts printing again, the printer of dollars goes into meltdown. So the underlying lending rate ends up falling. Somewhere along the way, Bitcoin loses its correlation to the stock market, as the decentralised finance sector experiences a precipitous drop.

Another dose of optimism – this time from the head of investment firm Galaxy Digital, Mike Novogratz. In a recent interview, he claims that the crypto market will recover to bullish trend levels, although the process may take quite some time.

Mike is confident that cryptocurrencies and stocks, which have been growing on the back of “eternal cheap money”, have come under pressure due to the US Federal Reserve’s sharp reduction in its liquidity balance sheet. That said, the crypto market has been hit hardest by repeated negative events over the past month. These include the collapse of major players Celsius and Three Arrows Capital, which created panic among investors.

Galaxy Digital founder Mike Novogratz

However, things will work out well for Bitcoin in the future - even a collapse of the cryptocurrency below the $20,000 line won't prevent it from growing in the long term. Admittedly, it could be a long time before that period of growth as big investors accumulate BTC and prepare for a new bull run.

Overall, Bitcoin has been experiencing one of the worst falls in its history since last week. It was also unprecedented for the major cryptocurrency, as for the first time ever the price of BTC fell below the all-time high set during the 2017 bull run. At what level is the cryptocurrency worth buying? A cryptotrader under the nickname Venturefounder shared the answers to this question on his Twitter account.

Note that the following is solely a trader's position and does not constitute financial advice. Make all investment decisions on your own and according to your own analysis.

A few days before, the $20,000 level was seen by many as the “last line of defense” before another major wave of Bitcoin plummet. This line was eventually broken after all, and traders now need to look for new levels that could be attractive to start accumulating coins.

Bitcoin exchange rate

According to Venturefounder, the events taking place in the market do not provide clear targets for prediction.

The speed at which market players capitulate at $20,000 surprised me a bit, I thought the process would take longer. However, given the macroeconomic environment (stock market collapse, dollar printing winding down and the problems of large funds like Three Arrows Capital), there really is a sense behind what is happening.

Venturefounder’s prediction for Bitcoin

And here are the trader’s own targets in a tweet published by news publication Cointelegraph.

My goal in the worst-case scenario is $14,000. Even if Bitcoin goes lower, I don’t think it will stay in that zone for long. I buy as its price falls, but in a collapse as low as $14,000 I will invest all my money in BTC.

Another interesting chart was published by the Whalemap platform. It also highlights major support levels for Bitcoin.

Possible levels to buy Bitcoin

Problems in crypto meanwhile continue to pile up, and fraud is one of them. In terms of cybercrime with digital assets, users of the business network LinkedIn are particularly vulnerable, according to FBI Special Agent Sean Ragan. Here’s a quote from his recent interview.

This type of fraudulent activity is quite significant. There are a significant number of potential victims on LinkedIn, there are also many victims in the past and right now.

As a reminder, LinkedIn has 830 million active users in more than 200 countries. Company representatives said that the platform has a track record of actively removing suspicious content and accounts that could belong to fraudsters. In 2021, the platform removed more than 136 million spam posts and fraudulent content. The company also got rid of more than 31.6 million fake accounts last year.

Fraud volumes in the crypto market from 2017 to 2021


We think it's impossible to predict developments in the cryptocurrency market. However, the coin industry is much faster to react, so there is no way to be sure. However, the fundamentals of digital assets have not changed, so there is still no doubt about their usefulness to the world.

What do you think about it? Share your opinion in our Millionaires’ Crypto Chat. There we discuss other interesting news as well.