Bitcoin
Bitcoin Price Outlook Remains Tentative Amid Bitcoin ETF Concerns
Bitcoin price jumped to its highest level since early August on Monday, hitting an intraday high of $30,000 on the back of an erroneous news report. The premier cryptocurrency has pulled back since then but remains slightly above the bullish support level of $28,145. Bitcoin’s total market cap has declined slightly over the past 24 hours to $551 billion, while the total volume of the asset traded over the same period crashed by more than 43%.
Bitcoin ETF Concerns
Bitcoin price jumped to its highest level in two months on Monday, rallying nearly 10% in the wake of fake news. The digital asset briefly made out with the coveted level of $30,000 before pulling back further to $28,500. BTC’s price jump was a bane to many investors who witnessed nearly $86 million worth of shorts liquidations.
The digital asset made a splash on Monday after a news outlet reported that investment firm giant BlackRock’s bitcoin spot exchange-traded fund (ETF) had received approval from the US Securities and Exchange Commission (SEC). The now-retracted story published by Cointelegraph on social media platform X (formerly known as Twitter), was denied by BlackRock to other news outlets.
Crypto market participants have been closely watching the potential approval of a spot Bitcoin ETF for years. The crypto community believes that the approval of a Bitcoin EFT would be a key steppingstone for mainstream adoption and could enable more market activity from institutional investors.
The SEC has delayed its decision regarding the spot ETF applications of Fidelity, VanEck, and WisdomTree slated for October 17. Comments by Bloomberg ETF analyst, Eric Balchunas suggest that the approval is likely to be delayed until January 2024. According to a researcher at Coinbase, the impact of a potential greenlight for a Bitcoin EFT has already been partially priced in for the primary cryptocurrency. As such, the Bitcoin price might not rally as hard as traders anticipate when the spot-based EFT gets the approval.
Bitcoin Price Technical Analysis
Bitcoin price has been hovering below the important level of $28,500 over the past few days. The asset has managed to flip the resistance level of $28,145 into a bullish support floor. The BTC price was slightly lower at $28,315.75 at press time. Even so, the digital currency remains above the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) suggests that the asset is not too far from being overbought and could be at risk of correction.
Consequently, the Bitcoin price has a chance to climb higher and break above the resistance at $29,000 amid the broader market bullish sentiment. A break above this level would push the price higher to the coveted $30,000 level. Conversely, should Bitcoin lose its support at the 50-day EMA at $27,250, the bullish thesis would be invalidated.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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