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

In recent weeks, the launch of the first Bitcoin ETFs has sparked a wave of euphoria in the crypto market. Bitcoin has seen several sessions of strong gains and has risen back above the $45,000 mark. Some see this as a sign that the bear market is over! However, others fear it may just be a manipulation aimed at artificially boosting 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 had fallen below $40,000 in 2023. The ETFs arrived just in time to kickstart the momentum.

Some see this as confirmation that institutional adoption of Bitcoin is progressing inexorably. But others point out that this timing is strangely convenient. The hype around ETFs could be just a manipulation operation designed to drive up prices.

Once institutional investors have pumped up the prices, they could be tempted to take their profits. This would lead to a massive dump and bitcoin’s return to the lowest levels of the bear market. This scenario has happened in the past. It remains to be seen if this time is different.

Towards a decisive test to determine the strength of the recovery

This week could be a crucial test with the 4-day conference ending on the 14th to determine whether Bitcoin’s recovery is indeed confirmed. Or if it was just a bull trap meant to snare buyers before a sharp bearish reversal.

Several factors could bring a halt to the bullish momentum. First, the flow into ETFs could quickly dry up, causing a loss of investor interest and a drop in prices. Next, Bitcoin could encounter major technical resistance, such as the $48,500 level, where many holders are still underwater.

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

The coming days will therefore provide a real-world test to assess the strength of Bitcoin’s recovery. Investors will be closely monitoring ETF flows as well as the price action around key levels. One thing is certain, volatility can be expected.