Recent Bitcoin price volatility is attributed to ETF tax strategies rather than changes in market sentiment, according to Bloomberg. Analyst Eric Balchunas highlights the role of "heartbeat trades" executed by large funds at the end of quarters, which result in V-shaped price patterns. These trades, designed for tax efficiency through in-kind transfers, temporarily affect the spot price. Investors are advised to consider trade timing and volume to distinguish these mechanical movements from genuine market sentiment shifts.
Bitcoin Volatility Driven by ETF Tax Strategies, Not Market Sentiment
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