Bitcoin needs a weak dollar/Spot ETF approval to break yearly high

The Crypto market is still riding on bullish reversal trend despite an uptick in the dollar and regulatory delays on a Bitcoin spot ETF.

The most valuable crypto asset is up about 70% from November 2022, defying concerns about rising interest rates while also benefiting from growing optimism towards mortgage adoption.

However, in recent months, the US dollar index, a measure of the greenback’s strength against a major group of foreign currencies, has risen to its highest level since November 2022, dampening the appetite for risk.

Bitcoin price is currently testing a key level ($27k) and its reaction could determine market price action in the medium term. Therefore, it will be useful to carefully analyze possible scenarios.

On the daily timeframe, the price has been testing the 50-day moving average, which has been hovering around $26,800 for the past few days. In the event of a bullish breakout, Bitcoin is likely to move towards the $27,500 resistance level and even the 200-day moving average located around the $28,000 region.

JP Morgan, the world’s most valuable bank in Q2, recognized Bitcoin’s potential by predicting a price of $45,000.

According to JPMorgan analysts, since many investors view gold/bitcoin assets as interchangeable, gold prices imply that Bitcoin will trade at significantly higher levels than current levels.

Consequently, the US Securities and Exchange Commission (SEC) once again postponed a decision on a one-time Bitcoin ETF registration from several companies, including Blackrock, Invesco, Valkyrie, and Bitwise.

The delay was announced Tuesday, following a congressional hearing in which SEC Chairman Gary Gensler was questioned at length. Most of these companies applied to join the Bitcoin ETF in June 2023.

The first decision to postpone the ETF was made at the end of August 2023. The SEC’s recent statement clarified that the initiation of proceedings “indicates no conclusion as to whether the issues involved.

The postponement comes a day after Gensler appeared at a US Congressional hearing on Wednesday, September 27.

Gensler maintained his cautious stance on the cryptocurrency market during the hearing. He criticized crypto firms for how they handle customer funds, suggesting that mixing funds can lead to poor results.

However, sentiments around market integrity and investor protection are complicating the evolving crypto regulatory landscape. 2023 is already proving to be a pivotal year in promoting global clarity on crypto regulations in many countries.

And despite criticism that the US is actively targeting crypto companies, the SEC’s impending approval could signal a seismic shift in its approach. Bitcoin bulls have been unable to keep BTC price above $30,000.

Therefore, with the “bullish” halving still more than 200 days away, many traders are wondering whether the price of Bitcoin will decline again in the coming months.

As Bitcoin prices stabilized between $25,000 and $30,000 over the past few months, some interesting developments were taking place in the background. Miners seem optimistic about the near future.

Miners are arguably the most important entities in the Bitcoin space, as they keep the network secure while owning large amounts of BTC. Therefore, their behaviour can have a significant impact on prices.

Download NewsTimes App for breaking news and market intelligence.
play store banner     app store banner

Back to top button