US stock traders are now believed to have a significant influence on Bitcoin prices, according to Kim Min-seung, the head of the Korbit Research Center at the Korbit crypto exchange. In the past, Bitcoin prices were mainly affected by the activities of miners and whales, but this has shifted in recent months. Kim noted that the decision by the SEC to approve Bitcoin spot exchange-traded funds (ETFs) has created a new market dynamic centered on stock market traders. Analysts have found that Bitcoin prices are now sensitive to trends in US spot ETFs, indicating a shift in influence from traditional factors.
Previously, macro market factors such as interest rates, pandemics, policies, and wars had a major impact on Bitcoin markets. However, since the SEC’s decision in January, trading bots in Asia and other regions have started following the lead of US stock traders and ETF trading patterns. This has resulted in Bitcoin prices rising or falling during US stock market hours and repeating the same trends during Asian market hours. The approval of BTC spot ETFs is seen as a driving force behind this new pattern, suggesting that Bitcoin markets are now closely tied to US stock market activities.
In addition to spot markets, Kim also noted that similar patterns were emerging in Bitcoin and crypto futures markets, leading to the liquidation of long and short positions. South Korean analysts predict that there will be an influx of additional institutional investors into the market, which could have a significant impact on the country’s Bitcoin market. Currently, South Korea’s Bitcoin and altcoin markets are largely dominated by retail investors, but the entry of institutional investors could lead to increased market activity and volatility. Kim believes that these factors, combined with the upcoming halving event, are likely to create synergies that will drive Bitcoin prices higher in the future.
As of the time of writing, South Korea was in the midst of parliamentary elections, with the Democratic Party poised to win a significant majority. The party had promised voters that it would pressure regulators to approve South Korean Bitcoin and altcoin ETFs, which could further bolster institutional interest in the market. If South Korea were to approve such ETFs, it could have a seismic effect on the country’s crypto market, potentially attracting more institutional investors and funds to the market. Overall, the evolving market dynamics, combined with the increasing influence of US stock traders and the potential influx of institutional investors, are expected to contribute to higher Bitcoin prices in the future.
