Pending SEC Verdict on Bitcoin ETFs Fuels Speculation and Impacts Altcoin Prices
Summary:
Bitcoin enthusiasts eagerly await a decision from the U.S. Securities and Exchange Commission on the spot Bitcoin exchange-traded fund (ETF) applications, expected between January 8 and 10. The outcome could significantly impact Bitcoin and altcoin prices. Investor speculation revolves around whether the approval of one or more ETFs would boost Bitcoin's value. If declined, a quick sell-off is expected, but not a bear market due to the impending Bitcoin halving event in April. The article also provides an analysis of the recent price trends of Internet Computer (ICP), Arbitrum (ARB), Stacks (STX), and Maker (MKR) cryptocurrencies.
Bitcoin enthusiasts are eagerly awaiting the verdict on the spot Bitcoin exchange-traded fund (ETF). The decision is expected to come from the U.S. Securities and Exchange Commission between January 8 and 10. The key question on investors’ minds is whether Bitcoin's value will rise if one or more spot Bitcoin ETFs receive approval. Post ETF approval, Bitcoin price is expected to rise initially, after which investors may begin cashing in on their profits, a conventional practice known as buying the rumor and selling the news. If the spot Bitcoin ETF application is denied, a quick sell-off is anticipated, though it is not likely to trigger a bear market as investors will soon turn their attention to Bitcoin halving in April, setting a limit to potential losses. Speculation that Bitcoin ETFs will eventually be approved could also revive the market bulls at lower rates. If Bitcoin remains in good standing, specific altcoins could likely get back on their upward trajectories. Here's a look at the top five cryptocurrencies that could potentially outperform in the near term.
Bitcoin's price has shown fluctuations over the past couple of days indicating uncertainty amongst buyers and sellers. On a positive note, the price continues to stay within the rising triangle pattern and could potentially rise to $44,700. If the price crosses this barrier, Bitcoin could commence the next phase of its upward trajectory targeting $49,178 and later possibly escalating to $52,000.
The prices of Internet Computer (ICP) have been dropping drastically, indicating traders' rush to drop their stakes. However, the bulls are likely to try and control the freefall around the 20-day EMA ($11.18) mark. If a strong rebound is observed at the 20-day EMA, it's a sign that traders are buying on the downside, increasing the chances of the ICP/USDT pair bouncing back to $14.40 and possibly $16.
In the case of Arbitrum (ARB), a failure to keep prices above $2 has possibly enticed short-term traders to book profits, pulling the price down to $1.75. The ARB/USDT pair is expected to see a tough contest between buyers and sellers near $1.75. A steep rise from $1.75 would suggest that bulls have converted this level into support, implying a potential retesting of the Jan 4 high of $2.11.
For Stacks (STX), the price picked up from the 20-day EMA ($1.47) on Jan 6, suggesting that bulls are consistently buying at lower levels. The STX/USDT pair could potentially hit $2.20 and afterwards, probably $2.50 if the current strong selling phase by bears is successfully managed by buyers.
As for Maker (MKR), there has been a pullback. On a positive note, the bulls have prevented the prices from falling below the breakout level of $1,651. The MKR/USDT pair could potentially rally towards the overhead resistance at $2,000 if the rebound off $1,651 holds.
The information in this report does not serve as investment advice or recommendation. All types of investments and trading involve certain risks which readers should be fully aware of before they make any decisions. It is crucial to conduct comprehensive research before making any investment.
Published At
1/7/2024 11:42:51 PM
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