All this talk about Crypto ETFs and if approved it raising the prices of said crypto. Wouldn’t all these whales and firms start buy whatever Crypto at current prices how would that move the price when it gets approved? What am I missing?
All this talk about Crypto ETFs and if approved it raising the prices of said crypto. Wouldn’t all these whales and firms start buy whatever Crypto at current prices how would that move the price when it gets approved? What am I missing?
Comments
There isn’t really an objectively correct answer to this. If those participating in the market think something is going to positively improve the price of an asset in the future then, yes, it will be “priced in” to an extent and you’ll see the price increase ahead of that something taking effect.
Markets, and cryptocurrency especially, are however not always rational. Nor are those influencing said markets guaranteed to arrive at the same conclusion as you (e.g. your “rational” behaviour may not align with theirs).
I say cryptocurrency especially because it is a purely speculative asset and the primary driver is psychology, most (if not all) of the assets being traded have no real use case and little prospect of ever finding one, and as such it is inherently unpredictable.