Weekly Crypto Recap with NewsCrypto
Welcome back, NewsCrypto enthusiasts! It's time for another edition of the NewsCrypto newsletter.
Today we are going to discuss how approval of Bitcoin ETFs could impact the price of Bitcoin and how low could Bitcoin go before the halving and inevitable rally.
Let’s jump right in.
What's on the menu today?
1. Breaking Crypto News
2. Fear & Greed Index
3. BTC TA Analysis
4. What Do Bitcoin ETF Approvals Mean for the Crypto Market?
5. Funniest Meme of the Week
· Coinbase says that it has “extensively prepared” for spot bitcoin ETF approvals by the U.S. SEC.
· The Solana Foundation, the institution in charge of managing initiatives related to the Solana network, has announced it will expand to Brazil..
· Michael Saylor, is selling $216 million of his company’s shares to buy more Bitcoin.
· Investment bank TD Cowen predicts the U.S. SEC will approve a spot Bitcoin ETF.
· A report issued in December by Bain and Company and JPMorgan executives recognized the impact that tokenization can have in bringing alternative investments.
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Fear & Greed Index
Bitcoin TA Analysis
· Bitcoin Daily Time Frame
At the time of writing Bitcoin is pushing higher and is currently above the resistance at $44.5k but the most important question remains - will Bitcoin manage to find support above it or is this just another pump into buy side liquidity.
We can see $BTC is in a clear uptrend for more than a week now. This just another sign of bullish market sentiment.
It wouldn’t be surprising if Bitcoin finds support above the before mentioned resistance before January 10th when the decision about spot Bitcoin ETFs is expected. After that there are two possible scenarios:
1. ETFs get approved - target will be $48k-$52k. Followed by a “pre-halving selloff”.
2. ETFs get rejected or delayed - target will be $35k-$38k with continued selloff into halving.
What will be the bottom before Bitcoin starts rallying again?
By looking at the most important part - Bitcoin miners - and their break even price we can expect the low to be somewhere around $30k which will be a break even for most efficient miners post halving. This price would put a lot of stress on less efficient miners.
Now let’s assume ETFs get approved. Let’s take a look at what happened to the price of $GOLD after November 18th 2004 when gold ETFs got approved.
Upon the approval gold has rallied but quickly formed the top and started to selloff but that’s not the point. Zoom out and take a look what happened to the price not in matter of days but in matter of years. It rose significantly.
What Do Bitcoin ETF Approvals mean for the Crypto Market?
The crypto market is excited but split . Bloomberg analyst James Seyffart has recently posted an analysis of staggering 95% chance of approval for Bitcoin Spot ETFs by the SEC. This optimism isn't just a shot in the dark; it's backed by the SEC's recent acceptance of 19b-4 forms from exchanges and issuers, signaling a possible green light on the horizon. Once these are approved there is no turning back and chance of approval will be as high as 100%.
The Odds in Favor
The journey to this point has been anything but smooth, with previous rejections and regulatory hurdles. However, the tide seems to be turning. Seyffart's confidence stems from the successful navigation of key steps in the SEC approval process by major players in the ETF race. The potential approval on January 10 could mark a significant milestone, not just for the involved parties but for the entire crypto market.
Although a lot of influencer are claiming they know if ETFs are getting approved or not just know that they have no clue!
The Ripple Effect
While some experts caution about a potential 'sell-the-news' event, reminiscent of recent drops in altcoins like Cardano and Ethereum, the overall sentiment remains bullish. A positive decision could unleash a new wave of institutional investment and mainstream acceptance of cryptocurrencies. However, should the SEC decide to delay or reject the proposals, it could trigger a storm of criticism, particularly from the younger, more crypto-savvy generation.
What Do the Approvals Mean for Market?
In parallel to the ETF developments, BlackRock, the world's largest asset manager, has been making significant moves in the crypto space. According to unnamed sources BlackRock has $2 billion lined up for the first week after approval. They are not the only one that will be buying, Ark Invest just recently sold $130 million of GBTC which they could use to fund their own spot Bitcoin ETF.
The Bigger Picture
BlackRock's entry into the market could serve as a catalyst for other institutional investors, who have been cautiously observing from the sidelines. This move could potentially lead to increased liquidity, stability, and maturity in the crypto markets.
It's clear that the future will be shaped by a blend of innovation and regulation. The approval of Bitcoin ETFs and the involvement of institutional giants are not just isolated events; they are part of a larger narrative that sees digital assets becoming an integral part of the financial mainstream.
Funniest Meme of the Week