Is the price of BTC artificially boosted?  Bitcoin put to the test!

In recent weeks, the arrival of the first Bitcoin ETFs has caused a wave of euphoria on the crypto market. Bitcoin has had several sessions of strong growth and has returned above $45,000. Some see this as a sign that the bear market is over! But others fear that it is only a manipulation intended to artificially boost prices.

The impact of bitcoin ETFs on prices

The launch of Bitcoin ETFs comes just as bitcoin was emerging from a long bearish period. After reaching $69,000 in November 2021, it fell back below $40,000 in 2023. ETFs arrived just in time to restart the machine.

Some see this as confirmation that institutional adoption of Bitcoin is progressing inexorably. But others point out that this timing is strangely opportune. The hype around ETFs may just be manipulation intended to drive up prices.

Once institutional investors pump prices, they may be tempted to take profits. This would cause a massive dump and the return of bitcoin to the lowest levels of the bear market. This scenario has happened before. It remains to be seen if this time is different.

Towards a litmus test to determine the strength of the recovery

This week could be a crucial test with the 4 day conference which will end on the 14th to determine whether the recovery of Bitcoin is indeed confirmed. Or, if it was just a bull trap intended to trap buyers before a sharp bearish reversal.

Several factors could put an end to the upward momentum. First, flows into ETFs could quickly dry up, causing investors to lose interest and prices to fall. Then, Bitcoin could come up against major technical resistance, such as that of $48,500 where many holders are still underwater.

Finally, any negative signs from the macroeconomy, such as higher-than-expected inflation, could trigger a sharp sell-off. Conversely, a solid crossing of $50,000 would change the situation and confirm the start of a new bull run.

The coming days will therefore offer a full-scale test to gauge the strength of Bitcoin’s recovery. Investors will carefully scrutinize ETF flows as well as price behavior around key levels. One thing is certain, volatility is to be expected.

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