Following the court victory, Grayscale has urged the US Securities and Exchange Commission to authorise a spot bitcoin exchange-traded fund.
In the midst of this market turmoil, former U.S. Securities and Exchange Commission (SEC) chair Jay Clayton made a bold prediction. He stated that the eventual approval of a spot Bitcoin exchange-traded fund (ETF) is "inevitable."
This statement comes after the SEC postponed its decision on ETF filings from asset managers overseeing a combined $15 trillion until at least mid-October.
The cryptocurrency community had been buzzing with excitement surrounding the possibility of a spot Bitcoin ETF approval. This anticipation grew following a significant legal victory for crypto asset manager Greyscale over the SEC.
A court ruled that some of the regulator's arguments in rejecting spot Bitcoin ETF applications appeared "arbitrary and capricious," compelling the SEC to reevaluate Greyscale's proposal to convert its flagship GBTC fund into a full-fledged spot Bitcoin ETF.
In the wake of Greyscale's victory, Bloomberg Intelligence analysts raised the odds of a spot Bitcoin ETF approval by the end of 2023 from 65% to 75%. Additionally, JPMorgan analysts suggested that the SEC would have no choice but to approve the spot Bitcoin ETF applications in light of Greyscale's triumph against the SEC.
Despite earlier bullish predictions, Bitcoin's price has faced significant volatility. In August, it plummeted more than 11%, marking its second consecutive monthly decline. The broader sell-off in stocks and bonds also contributed to the cryptocurrency's challenges.
At the time of the latest check, Bitcoin was trading around $25,762. This recent decline comes after an impressive rally of about 80% in the first half of the year. Nevertheless, Bitcoin still boasts a year-to-date gain of over 55%, despite August's losses.
Despite the recent setbacks, experts remain optimistic about Bitcoin's future. With the next Bitcoin halving event scheduled for April 2024, there is anticipation of further price appreciation.
Joe Kelly, the co-founder and CEO of Unchained, expressed a conservative view, suggesting that if Bitcoin maintains a price around $30,000 until the halving, even a modest 250% increase in the 12 months following the halving would result in a Bitcoin price of $105,000.
As per CoinStats, Bitcoin is currently trading at $25,788.95, up 0.36% in the previous 24 hours, with a live market size of $502 billion. It has a circulating supply volume of 21,000,000 BTC coins and a maximum supply volume of 21,000,000, with a 24 hour trading volume of $10B.
According to Bitcoin Price prediction, on the daily timescale, the price has dropped dramatically from the $30K resistance zone, breaking below both the 50-day and 200-day moving averages. The support level of $25K is now holding it.
However, the 200-day moving average, which is placed around the $28K mark, has rejected the price, pushing it back towards the $25K level. Furthermore, the 50-day moving average is approaching the 200-day moving average, implying a bearish crossover.
Given all of the facts, the price is likely to fall significantly further if the $25K level fails to hold.
In conclusion, Bitcoin's journey continues to be filled with twists and turns. The market's response to regulatory developments, legal victories, and macroeconomic factors underscores the complex nature of the cryptocurrency landscape. Investors and enthusiasts eagerly await further developments as Bitcoin's price and regulatory environment remain in flux.