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Bitcoin ETF Launch Fails to Sustain Momentum as Price Drops

Coin WorldSaturday, Mar 8, 2025 6:06 pm ET
1min read

Bitcoin's recent performance has raised questions about the impact of its spot ETF launch, which was initially seen as a game-changer for the crypto industry. The launch was expected to attract significant institutional investment, driving Bitcoin to new heights. However, since January 20, 2024, Bitcoin has struggled to maintain its upward momentum, leading to speculation that the market may have overestimated the immediate benefits of the ETF launch.

Historical market patterns offer some insights into Bitcoin's current trajectory. Analysts have drawn parallels between Bitcoin's ETF performance and the Nasdaq-100 ETF (QQQ) launched in 1999. The QQQ ETF reached its peak 54 weeks after its inception, a timeline that aligns with Bitcoin's peak 54 weeks post-ETF launch. This coincidence is notable, especially given that this peak coincided with the U.S. presidential inauguration, a potential macroeconomic turning point.

One of the key issues in this cycle has been the distribution of liquidity. The rise of memecoins has diverted capital away from Bitcoin and other established assets. Many retail investors were drawn into the hype of a “memecoin supercycle,” only to see most of these tokens collapse. This pattern mirrors previous speculative bubbles, where hype-driven assets briefly outperformed before erasing gains. Bitcoin dominance, which has climbed from 38% to 64%, indicates that capital is consolidating back into BTC as investors lose confidence in altcoins and opt for Bitcoin’s relative stability.

The role of ETFs in this cycle has also been a subject of debate. While they increase Bitcoin’s accessibility, they also raise concerns about long-term decentralization and institutional control over supply. The launch of Bitcoin spot ETFs was initially hailed as a major shift for the crypto industry, but the reality has played out differently. The market may have priced in perfection too soon, leading to a stalling of Bitcoin's momentum.

Historical market cycles provide another interesting perspective. The 1970s, a period of high inflation and economic uncertainty, saw two left-translated market cycles. A left-translated cycle occurs when a market peak happens early, leading to prolonged bearish conditions. If Bitcoin follows this pattern, we may see a sharp decline in Q1 2025, followed by a temporary relief rally in Q

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Sandra Kevin
03/08

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Certain-Dragonfly-22
03/09
@Sandra Kevin Sure
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Wonderful_Touch5652
03/08
I'm holding BTC long-term. Not worried about short-term noise. Focusing on decentralization and inflation hedging.
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Charming_Raccoon4361
03/09
@Wonderful_Touch5652 How long you planning to hold BTC? Any specific targets or timelines?
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BrianNice23
03/08
Diversify beyond BTC, memecoins are dead weight
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whoisjian
03/08
Bitcoin's ETF hype feels like a pump and dump. Institutions might be cooling off, making room for retail to buy the dip.
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Puginator
03/09
@whoisjian True dat, bro.
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daarkann
03/08
The memecoins frenzy was a distraction. Now, folks are realizing Bitcoin's stability is gold. 🤑
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Affectionate_You_502
03/09
@daarkann Do you think BTC will moon?
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tostitostiesto
03/08
ETFs making Bitcoin more accessible, but at what cost? Let's not forget crypto's wild spirit.
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vannucker
03/08
Bitcoin's dominance rise screams that folks are playing it safe. Altcoins are risky biz lately.
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Interesting_Award_86
03/09
@vannucker Are you worried about the volatility?
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theamykupps
03/09
@vannucker True dat, altcoins r shaky.
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Agreeable_Zebra_4080
03/08
QQQ parallels interesting, but Bitcoin's path uncertain.
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Accomplished-Bill-45
03/09
@Agreeable_Zebra_4080 True, Bitcoin's path uncertain.
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Eli9105
03/08
Inflation fears + ETF mania = market correction soon? 🤔
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BURBEYP
03/09
@Eli9105 Think market's overbought?
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SuperRedHulk1
03/08
ETF hype feels like a pump n' dump. Gotta keep an eye on those fundamentals.
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qw1ns
03/08
Still holding BTC long-term. Market noise don't faze me. Focused on financial freedom, not short-term gains.
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bottlethecat
03/08
If Bitcoin follows the 1970s pattern, buckle up for a wild ride. 🚀
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Pushover112233
03/09
@bottlethecat You think the '70s pattern fits?
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NoBicDeal
03/09
@bottlethecat True dat, buckle up.
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Quiet_Maybe7304
03/08
Bitcoin's ETF hype feels like a bubble pop incoming
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VegetaIsSuperior
03/08
Holding $BTC, $ETH, dodging memecoin trap, staying safe
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joaopedrosp
03/09
@VegetaIsSuperior How long you been holding BTC and ETH? Any top memecoins you caught accidentally?
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jobsurfer
03/09
@VegetaIsSuperior I'm in BTC and ETH too, but sold ETH too early. FOMO hits hard when seeing these gains.
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Direct_Name_2996
03/08
Market cycles are wild. Left-translated cycles freak me out. Just hope we don't see a repeat of the 1970s.
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