As the price of bitcoin has regained previously lost territory, following reports suggesting that the US Securities and Exchange Commission (SEC) would reject the long-awaited bitcoin. spot exchange traded funds (ETF), new developments have revived hopes among investors.
Although approval of these index funds is not expected to occur on Friday, sources indicate that next week may bring positive news.
ETF Approval to Drive bitcoin Price Gradual Rising to $500,000
Eleanor Terrett, FOX journalist reports which amended the 19b-4 filings and last-minute phone calls regarding comments on the S-1s and possible release dates are expected in the coming days.
While approvals seem likely In the coming week, according to Terret, the schedule ultimately depends on the SEC's ability to review submitted comments and amendments efficiently.
Terret describes the current situation as a meticulous process of “dotting the i's and crossing the t's,” emphasizing the attention to detail required for regulatory clearance.
On the other hand, crypto analyst Adam Cochran offers valuable insight into the potential impact of bitcoin ETFs, as all signs point to the imminent approval of these investment products.
Cochran suggests that many may “overestimate” the short-term effects of ETF approval while underestimating its long-term implications. Immediately after, market flows may not see a significant increase. However, Cochran believes investment advisors will review their clients' portfolios over the next year and recommend diversifying even a small percentage, like 1%, into ETFs.
Cochran highlights that bitcoin price performancewith a notable 157% return in the second half of 2023, it will be a key factor driving investor interest.
Cochran foresees a gradual upward trajectory for the price of bitcoin, characterized by persistent growth and occasional market volatility.
Ultimately, Cochran's long-term forecast indicates a possible rise in bitcoin price to $500,000 per coin, leaving sidelined investors sadly waiting for a substantial improvement. market correction. Cochran further noted:
Additionally, ETFs generate spot purchases, not leverage, which improves the health of the system. And they are long-term holders, less likely to sell volatility. Therefore, it creates a slow deterioration of the underlying health of the market. Like the best DCA you could ask for.
bitcoin ETF Pricing Potential Not Fully Realized
crypto analyst Ali Martinez suggests that the pricing potential of a bitcoin ETF may not have been fully realized, providing insight into the current state of the bitcoin market.
Martinez points to a decrease in the estimated leverage ratio in all stock markets, reaching its lowest level in two years. This indicates that bitcoin traders are taking a more cautious approach, reducing the use of borrowed funds while awaiting regulatory clarity on the ETF.
Furthermore, Martínez emphasize the importance of bitcoin price above $41,800. According to Martínez, bitcoin's ability to maintain its position above $41,800 is crucial to establishing a bullish outlook.
This level is bolstered by approximately 2.41 million addresses holding over 1 million btc, creating a substantial support zone.
The significant number of addresses with significant bitcoin holdings suggests strong interest in maintaining the value of the cryptocurrency and provides a foundation for market stability. Martínez notes that future resistance levels for bitcoin appear relatively minor. This means that there are fewer important barriers preventing possible price increases.
With reduced resistance, market conditions become more favorable for stable or rising prices, further supporting bullish sentiment.
Featured image from Shutterstock, chart from TradingView.com
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