Bitcoin Makes Recovery Attempts Amid Uncertainty Over US's First Spot Bitcoin ETF
Summary:
Bitcoin attempts to recover to recent highs amid lack of news regarding a potential exchange-traded fund (ETF). Predicted volatility due to rumors of the US's first spot Bitcoin ETF remains unconfirmed. Analyst James Seyffart indicates likely preliminary approval, with formal approval expected by January 10. Despite speculative predictions, Bitcoin remains mostly stable. The core macro narrative impacting cryptocurrency's performance relates to the Federal Reserve's interest rate policy. Bitcoin's block subsidy halving event occurs after the March rates decision. The article advises individuals to conduct independent research as all investment and trading endeavors pose risks.
Bitcoin (BTC) has been making attempts to approach its most recent peak on January 4, as news regarding potential exchange-traded funds (ETF) remains unsurprisingly quiet. Insights from Cointelegraph Markets Pro and TradingView reveal that Bitcoin's price is currently hovering somewhere over $43,000. Observers projected fluctuations in price due to circulating conjecture about the possible consent for America's first spot Bitcoin ETF. However, official confirmations remain unheard of till now. On X (formerly known as Twitter), Bloomberg Intelligence analyst James Seyffart forewarned that any affirmative signals from regulators this week would only lead to formal approval around January 10. He wrote, "We were anticipating 19b-4 amendment filings inclusive of modifications discussed between SEC and issuers for weeks, primarily cash create/redeem." He added that approval orders were expected in the coming week. However, the markets displayed no signs of factoring in an upcoming decision as Bitcoin maintained a mostly stable price after bouncing back from a liquidity drop that occurred earlier in the week. The varying predictions of Bitcoin's price reaction to this decision also contribute to this price stability, with both potential peaks and troughs being accounted for. As per trading firm QCP Capital's most recent market update, there is a price cap caused by resistance between 46 - 48.5k, and support is found within the 40.5 - 42k range. Besides ETFs, the fundamental macro narrative affecting the cryptocurrency market performance revolves around the Federal Reserve's interest rate policy. Investors are cautious of a possible bearish tendency following news of the ETF, yet the price's efficacy reassures them of a bullish outlook nearing the Bitcoin halving around March/April this year. The market's potential risk-off state could be induced by upcoming data revealing a revitalization of the job market or incremented inflation. Bitcoin's imminent block subsidy halving event is anticipated to follow shortly after the March rates verdict. Notably, this report doesn't constitute investment or financial advice. All trading and investment endeavors involve risks, and individuals should undertake independent research prior to making a decision.
Published At
1/5/2024 8:18:39 PM
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