Without Spot Bitcoin ETFs, BTC Would Have Been Down 20%: Founder Founder says Bitcoin ETFs without any issues prevented BTC from dropping by 20%.

Samson Mow, a developer and founder of a cryptocurrency project, believes that the recent stability in Bitcoin’s price can be credited to the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States. During a conversation with X on February 22, Mow stated that spot ETFs have helped avoid a major price decrease, which has kept Bitcoin at a higher level. The creator thinks that without the additional funding from spot Bitcoin ETFs, the cryptocurrency would have experienced a decrease of 10-20%, possibly dropping below $40,000. Up to now, in mid-February, the different derivatives have added billions of dollars to the Bitcoin market. Afterward, the asset’s ability to be quickly bought or sold has gone up.. Additional Reading: FTX’s Sam Bankman-Fried Returns to Court: Important Details to Understand. The connection between liquidity and volatility is intricate but becoming more understood, particularly in the realm of cryptocurrency and Bitcoin trading. The general guideline is that the greater the number of buyers and sellers, or traders, the greater the circulating capital and liquidity. In basic terms, liquidity is a way to measure the ease of trading. A market with low liquidity has less circulating capital, making it difficult to exchange assets.