Assalamu Alaikum
Bitcoin ETF is approved in 2024, and before Bitcoin ETF was approved, we were all looking forward to it, because we all assumed, The Crypto market may not see a huge downtrend in the market like in the past, Because we all know that after ETF is approved, a lot of money will come into the market, and it will become easier for big investors to invest in the crypto market, But our thinking is completely the opposite, however, I will share some bad effects with you today,
1️⃣ Bitcoin Dominance is increasing
After Bitcoin ETF was approved, big investors are controlling Bitcoin, and as a result, alternative investors are considering this alternative coin as a risk and are looking at Bitcoin, as a result, Bitcoin dominance is increasing day by day,
2️⃣ Actual Bitcoin Ownership is Declining
In fact, ETF investors are not actually buying Bitcoin, they are just holding the value on paper. This shows that direct participation in the network is decreasing. In simple terms, the number of direct participants in the blockchain has decreased,
3️⃣ Market manipulation risks are rising
Since they have a large amount of Bitcoin holdings, they can sell their Bitcoin at will, lower the price and buy it again at this lower price, which creates a panic in the market.
4️⃣Pressure in the Mining Sector
As a result of the drama related to ETFs, the price is pumped and dumped a lot or the market is very unstable, and as a result, it becomes very difficult for various mining companies to earn or survive,
5️⃣ Psychological Trap for Retail Investors
The worst part of ETFs is that when an ordinary user learns that an ETF has been approved for Bitcoin, they think that Bitcoin is very safe, as a result, they invest in Bitcoin at a high price. Then it turns out that the ordinary investor has suffered a huge loss,
6️⃣ Blockchain usage is declining
ETF investors never use blockchain, they only buy bitcoin on paper,
such as various payment methods, Decentralization apps, etc. As a result, such services are lagging behind,
I have highlighted the bad effects of Bitcoin ETF Approval with you, I hope everyone understands,
I will come again with the next topic, Allah-Hafez,
0.000 SRY