Many people believe that once a cryptocurrency ETF is approved, the price should skyrocket, but the actual results are often disappointing. In fact, the logic behind this needs to be examined carefully.
ETFs indeed bring a significant increase in market liquidity, no doubt about that. The problem is—ETFs themselves are not obligated to support the market. Retail investors in the OTC market are also mostly engaging in high-selling and low-buying strategies, with few truly investing for the long-term value. The end result is that although liquidity has increased, volatility has actually been amplified.
You can see this in the current market trend. Bitcoin dropped from 130,000 to 80,000, which seems like a major negative signal, but in the long run, such intense fluctuations have actually become the new normal. The range of volatility will only continue to exist.
It is worth noting that the newly submitted ETF includes ZEC. This indicates that the market’s acceptance of privacy coins is increasing, and mainstream acceptance is gradually being released.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
4
Repost
Share
Comment
0/400
DAOdreamer
· 4h ago
Uh... Basically, when liquidity comes in, the volatility actually gets crazier, right? Retail investors are still betting on short-term ups and downs. Everyone wants to catch the bottom, haha.
View OriginalReply0
MeltdownSurvivalist
· 4h ago
Having more liquidity actually leads to greater volatility; this logic is indeed contradictory.
ETF approval = straight surge; this dream is just too beautiful, huh?
ZEC has been added; has the privacy coin finally turned around?
How long do we have to keep playing the game of selling high and buying low?
Falling from 130,000 to 80,000; it all means nothing, mainly depends on who is harvesting whose leeks.
View OriginalReply0
AirdropAutomaton
· 4h ago
Retail investors all want to ride the ETF dividend wave, but end up being shaken out instead
ETFs are not the savior, brother. Increased liquidity also leads to more volatility
From 130,000 to 80,000, this move is truly astonishing. The so-called new normal is actually just a new way to harvest retail investors
ZEC getting involved? A signal of privacy coins making a comeback? Or just another false hype
View OriginalReply0
YieldWhisperer
· 4h ago
**Comment 1:**
Having more liquidity actually leads to greater volatility, this logic is a bit crazy.
**Comment 2:**
ETFs are just tools; expecting them to save the market should have been clear already.
**Comment 3:**
A drop from 130,000 to 80,000 in this wave—it's really intense... Is this the new normal of such turbulence?
**Comment 4:**
ZEC appearing in ETFs? A signal that privacy coins are making a comeback?
**Comment 5:**
Retail investors are still buying high and selling low; there's really no mistake in that. Everyone wants to buy the dip.
**Comment 6:**
The fluctuation range will only continue to exist, so long-term holders have to endure.
**Comment 7:**
Liquidity ≠ Market rescue; this misconception has caused many to suffer.
**Comment 8:**
Will ZEC be popular this time... It still feels like privacy coins are a bit cold.
Many people believe that once a cryptocurrency ETF is approved, the price should skyrocket, but the actual results are often disappointing. In fact, the logic behind this needs to be examined carefully.
ETFs indeed bring a significant increase in market liquidity, no doubt about that. The problem is—ETFs themselves are not obligated to support the market. Retail investors in the OTC market are also mostly engaging in high-selling and low-buying strategies, with few truly investing for the long-term value. The end result is that although liquidity has increased, volatility has actually been amplified.
You can see this in the current market trend. Bitcoin dropped from 130,000 to 80,000, which seems like a major negative signal, but in the long run, such intense fluctuations have actually become the new normal. The range of volatility will only continue to exist.
It is worth noting that the newly submitted ETF includes ZEC. This indicates that the market’s acceptance of privacy coins is increasing, and mainstream acceptance is gradually being released.