Bitcoin (BTC), which is the currency of bitcoin, has dropped almost 7% over the past week as the impact of the newly approved BTC ETF spreads through the market. The price of bitcoin has dropped by almost 7% in the last week, as the market reacts to the recently approved BTC ETF.

Timmer, Fidelity’s Director of Global Macro said in a thread posted on X that current trends of bitcoin’s price suggest a short-term adjustment of positioning rather than a trend reversal over the long term.

Timmer believes that the recent gains will be sustained.

The short-term question to ask is if this is a moment of selling the news. Timmer wrote on X that he believes it will take some time to consolidate recent gains now that the big day has arrived. “There were a number of participants who ‘equitized,’ future spot position through the futures markets or bitcoin-sensitive stocks.”

Timmer believes that bitcoin’s price is fair and is influenced by the growth of its network, the interest rates in the economic system and the long-term prospects.

“Will this be the beginning of a new chapter in Bitcoin’s adoption as a commodity currency?” Timmer posted. It seems to be that way. However, it may take some time.

Timmer says that even though the rally is stalling, many asset management firms continue to hold a net-long position of significant proportions in the bitcoin futures markets.

(Fidelity)

CoinDesk reported recently that Bitcoin’s simple moving average of 50 weeks has now crossed over its 200 week average for the first ever time.

This is also known as the “golden Cross,” and it indicates a bullish market over a longer period of time. However, its accuracy in predicting future trends is disputed by traders.

Omkar Godbole is the editor.