Bitcoin approaches upward breakthrough

Rania Gule

Bitcoin price approaches an upward breakthrough, hovering around $37,600 early on Thursday. Investors in the market anticipate approvals for Bitcoin exchange-traded funds (ETFs), as the U.S. Securities and Exchange Commission (SEC) requested public comments on the application of the Franklin Templeton Exchange-Traded Fund filed on the stock exchange yesterday.

This comes in conjunction with significant Bitcoin withdrawals from exchanges, based on data from cryptocurrency price tracking sites. The data indicates that approximately a billion dollars worth of BTC has been withdrawn from exchanges over the past week.

Bitcoin’s external flows, marked by a significant shift away from exchange platforms, have historically triggered buying fluctuations at market lows in previous years. This supports the theory of a potential medium and long-term rise in Bitcoin prices.

Yesterday, the regulatory body stated that deciding on the approval of instant Bitcoin exchange-traded funds will take more time. However, the agency has now changed its stance on such projects, seeking a unified and appropriate opinion before issuing its decision. This has raised hopes for approvals of traded instant Bitcoin funds.

From my perspective, another incentive supporting the bullish hypothesis for Bitcoin’s price is the increase in reserves for stablecoins. Approximately $15.23 billion of Tether is held in the top 10 USDT exchange wallets, indicating purchasing power and anticipated demand for Bitcoin.

I also anticipate the possibility of Bitcoin Spot ETFs receiving a single batch approval in January 2024. The total number of Bitcoin Spot ETF issuers has risen to 13, with the application of the Pando ETF by Pando, a European giant in traded investment funds.

Additionally, I believe that the delay in filing submissions and exchanging details with BlackRock’s trading and markets division within the Securities and Exchange Commission may play a role. After the asset management giant submitted a modified model design based on employee feedback in their recent meeting a week ago, it provides hope for the markets and incentivizes the approval of these funds, pushing Bitcoin prices higher and leading other cryptocurrencies to gain medium and long-term profits.

In the past few hours, the increase in Bitcoin prices has led to the liquidation of $8.94 million worth of sell deals within a short period. This explains the current downward price volatility, which may reach $35,700 before returning to an upward trajectory.