The Bitcoin price has experienced a surge in volatility due to the pending decision on the spot Exchange Traded Fund (ETF). Market participants are eagerly awaiting an announcement, which is expected to cause further volatility spikes. Currently, Bitcoin is trading at $43,900, recording a 1% profit over the last 24 hours and a 3% increase over the past week, making it the best-performing asset in the crypto top 10 by market cap.
Many analysts believe that the potential implications for the Bitcoin price, should the spot ETFs get approval, are impossible for the market to accurately predict. The bullish effects of this approval are expected to impact Bitcoin in the mid to long-term as capital enters the financial product. However, volatility is prone to sudden spikes. In late 2022, any news related to the Bitcoin ETF moved the market by thousands of dollars. This was most notable when the crypto news outlet Cointelegraph prematurely announced the financial product launch before receiving confirmation from the US Securities and Exchange Commission (SEC).
Developer Samson Mow suggests that this effect could benefit Bitcoin prices by pushing them beyond expectations. He points to the recent instance where two conflicting reports by analysis firm Matrixport pushed Bitcoin back to critical support levels. Mow believes a similar effect could drive Bitcoin back above the $50,000 mark.
Supporting the bullish thesis, trading desk QCP Capital highlighted the recent leverage “washed out” triggered by the Matrixport reports. Over $1 billion in long liquidations were triggered as Bitcoin returned to the $40,000 level. However, the cryptocurrency climbed back and re-took these levels’ mid-area. QCP Capital remains cautious of a potential “sell the news” knee-jerk reaction to the downside, but the resilient price action gives them more confidence in the medium-term bullish view into Bitcoin halving towards March/April this year.
Disclaimer: This article is provided for educational purposes only. It does not represent the opinions on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided entirely at your own risk.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Samson Mow |
| Companies | Matrixport, Exchange Traded Fund (ETF), QCP Capital, US Securities and Exchange Commission (SEC), NewsBTC |
| Currencies | Bitcoin |
| Securities | None |
