In the most recent episode of The Market Report, our in-house expert delves into the possibility of Bitcoin plunging below the $27,000 mark. Did you miss the boat on acquiring satoshis when they were under the $30,000 bracket?
During the latest segment of The Market Report, financial analyst and writer Marcel Pechman probes data to predict whether Bitcoin BTC, currently valued at $30,155, might drop to $27,000. Several market pundits link Bitcoin’s recent 21.5% surge to the BlackRock’s Bitcoin spot exchange-traded fund (ETF) filing. However, other events could also have spurred this cryptocurrency’s growth.
Pechman conveys that, following a succession of regulatory actions against exchanges supposedly functioning as unregistered securities brokers, the regulatory climate in the U.S. for crypto has progressed. In recent times, opposition to the U.S. Securities and Exchange Commission has emerged from both Congress and the Federal Reserve, reflecting the diverging opinions within the U.S. government regarding crypto regulation.
Pechman illustrates how the confidence in Bitcoin futures and margin markets is being rekindled, despite the recent price rally. An element of skepticism would typically be anticipated as traders brace for a setback following a 20% or higher gain. This implies that Bitcoin bulls should now have the leverage to uphold the $27,000 Bitcoin price support threshold.
Subsequently, Pechman questions the ARK Investment Management Bitcoin spot ETF application, rumored to be the frontrunner for SEC’s nod of approval. He underscores that the ETF dream has remained elusive for about half a dozen years, and the regulatory complaints remain unchanged.
Furthermore, the regulators’ opinions on stablecoins are of considerable significance, as they substantially impact the price formation on exchanges that cater to U.S.-based clientele. However, Pechman recommends against wagering against trillion-dollar asset management corporations.
Based on Pechman’s calculations, the U.S. Bitcoin spot ETF could lure $20 billion in market capitalization in a few years. Therefore, if you are confident that the ETF will gain approval within the next year or so, purchasing Bitcoin now could be a wise move.
Finally, the episode explores why miners are gearing up with additional equipment ahead of the 2024 Bitcoin halving. Don’t miss out! The Market Report is exclusively broadcasted on the newly launched Cointelegraph Markets & Research YouTube channel.
This discussion serves as a reminder that the volatile nature of Bitcoin and cryptocurrencies, in general, can make them a risky investment. However, with potential regulatory improvements and large-scale institutional interest, the market can also present unique opportunities. Always do your due diligence before investing in cryptocurrencies.
Moreover, the expected approval of Bitcoin ETFs by regulatory bodies could play a significant role in driving Bitcoin’s price and its acceptance among traditional investors. This would allow for greater market liquidity and could potentially lead to increased stability in Bitcoin’s price. Yet, as with all investments, potential rewards come with their associated risks. Stay informed, understand the market dynamics, and invest wisely.