Jeff Dorman, Chief Investment Officer at Arca, believes that Bitcoin will need a significant catalyst to break out of its range-bound ways. In a recent interview with journalists TV, Dorman said that while positive news such as Grayscale’s attempt to convert its Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF may cause a short-term price increase, real follow-through only happens once BlackRock and others start to really market bitcoin in their documents.
Dorman also pointed out that Bitcoin has been tracking real rates for much of the past year and a half, and that this correlation becomes particularly important when real rates start to rise. He added that during periods of loss of confidence in regional banks, such as in March, Bitcoin’s price was boosted.
The big question is, what will be the next market-moving sentiment? Dorman believes that if we start to see rates start to go back down or inflation going back up, and therefore real rates going down, this could be the catalyst Bitcoin needs to break out of its range-bound ways.
Quotes: “When you get positive ETF news, whether it’s Grayscale winning their lawsuit with the SEC or an actual approval of one of the many outstanding Bitcoin ETFs, you will definitely get a move higher in price,” and “If you’re looking for a short-term move in bitcoin, it’s probably going to be if we start to see rates start to go back down or inflation going up, and therefore real rates going down,”