- Experts predict a negative impact on Bitcoin’s price if the anticipated U.S. Spot-ETF is rejected, potentially causing a drop below $30,000.
- The market remains optimistic about Bitcoin’s long-term prospects, citing factors like the upcoming Bitcoin Halving and its growing acceptance as a digital store of value.
Bitcoin’s Price in the Wake of ETF Decisions
Bitcoin, the oldest and most widely recognized cryptocurrency, has recently exhibited a noticeable upward trend, fueled by the potential approval of the first Bitcoin Spot-ETF in the U.S. However, the cryptocurrency community is braced for the possibility of a decline in Bitcoin’s price if the U.S. Securities and Exchange Commission (SEC) rejects the Spot-ETF applications.
The Importance of a Bitcoin-Spot-ETF
A Bitcoin-Spot-ETF is seen as a milestone for crypto acceptance, especially among institutional investors and retail traders. It allows investment in Bitcoin without the need to buy tokens directly from a cryptocurrency exchange, significantly simplifying the process and potentially boosting Bitcoin’s price.
Speculations Amidst SEC’s Crypto Skepticism
Several firms, including industry giants like BlackRock, Grayscale, and ARK Invest, have repeatedly attempted to secure the SEC’s approval for their Bitcoin-ETFs. The SEC’s known skepticism towards cryptocurrencies and ongoing disputes with crypto service providers have kept the community on edge.
Potential Market Reaction to ETF Rejection
Laurent Kssis, a crypto trading advisor at CEC Capital, suggests that Bitcoin’s price might fall below $30,000 if the Spot-ETF application is denied. Currently, Bitcoin trades around $36,875. However, Kssis deems a more significant drop to $25,000 unlikely unless the SEC categorically rejects a Spot-ETF. He believes that the market will continue to seek solutions to implement the ETF, with other bullish factors like the upcoming Bitcoin Halving potentially mitigating the impact of any rejection.
Optimism Amid Uncertainty
Despite concerns, many experts remain optimistic about Bitcoin‘s future. Hashdex’s CIO, Samir Kerbage, highlights Bitcoin’s growing recognition as a digital store of value or ‘digital gold.’ He also cites the upcoming Bitcoin Halving as a positive price driver, regardless of the ETF’s approval.
MarketVector Indexes’ analyst Martin Leinweber shares a cautious view, acknowledging the disappointment a rejection would cause, given the ETF’s significance for institutional acceptance and mainstream financial integration. He believes that while Bitcoin’s existence doesn’t hinge on an ETF, its price could suffer in the short term, requiring the market to adapt and realign.
The Waiting Game for Crypto Enthusiasts
The uncertainty around the approval of a Bitcoin-Spot-ETF leaves much to speculation. Many market participants remain hopeful for future approval, but the timeline remains unclear. Crypto enthusiasts, for now, continue to wait patiently for a definitive outcome.
In conclusion, the cryptocurrency market, particularly Bitcoin, stands at a pivotal point, with the decision on the Spot-ETF holding significant implications. Whether for better or worse, the outcome will undoubtedly shape the market’s trajectory and investor sentiment in the near future.