BTC Price Retreats Below $29,000, Yet Explosive Rally to $150,000 Expected on Approval of BTC ETFs by BlackRock, Fidelity, Invesco, and More

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• Bitcoin struggles at $29,000, hitting its lowest since August 7.
• Fundstrat’s Tom Lee predicts a surge to $150,000 or more with Bitcoin ETF approval.

Bitcoin’s Market Resilience Amidst Declines

While Bitcoin’s (BTC) grip on the $29,000 mark seemed tentative on Wednesday, the market remained vigilant. Having touched a soft spot at $28,930 – its weakest since August 7 – it recovered slightly above $29,100 shortly afterward. Vetle Lunde, a senior analyst from digital asset firm K33 Research, highlighted the ongoing market sentiment,

“Bitcoin still struggles to find any directional momentum as prices remain glued to $29K.”

Ether (ETH) wasn’t immune to this downturn either, registering a slight drop of 0.8% in the past day, pulling down the CoinDesk Market Index (CMI) by 1.7%.

However, amidst this seemingly bearish trend, Tom Lee of Fundstrat Global Advisors painted an optimistic picture. Lee, in a recent CNBC appearance, forecasted an explosive potential growth for Bitcoin, particularly if a spot Bitcoin ETF receives approval. In his words, the anticipated demand would outpace Bitcoin’s daily supply, pegging its value possibly between “$150,000 to $180,000.”

Regulatory Hover: The SEC’s Moves

As Lee aired his bullish visions, the U.S. Securities and Exchange Commission (SEC) is actively reviewing multiple spot BTC ETF applications. The lineup includes financial behemoth BlackRock and has recently seen a postponement in the decision regarding Cathie Wood’s ARK21 application.

Altcoins Feel the Heat

Altcoins, the alternative cryptocurrencies, have taken a more pronounced hit. Notable mentions like Solana’s SOL, Dogecoin (DOGE), and Polygon’s MATIC faced setbacks, declining between 5% and 7% within a day. Even Ripple’s XRP, after its promising rally post the mid-July court ruling, saw a decline of 4.7% in the past day.

VanEck’s head of digital asset research, Matthew Sigel, provided a holistic take, noting,

“Current price action is marked by unusually low volatility, despite significant events impacting the crypto landscape.”

Broader Economic Concerns

With the Atlanta Fed updating its GDPNow model, U.S. GDP growth for the third quarter is anticipated at a robust 5.8%. Furthermore, the release from the U.S. Federal Reserve’s July meeting raised concerns about inflation, pointing towards potential rate hikes.

This combined financial data has sent the 10-year Treasury yield soaring to 4.27% – the pinnacle for 2023 and close to a 15-year record – leading to subsequent ripple effects on stock indices like the Nasdaq.