The crypto community watched with baited breath as the price of Bitcoin inched up by 0.8%, prompting a flurry of speculation on whether it might be an opportune window to dive into the market.
At times like these, it’s critical to be an enlightened investor, taking into account a diverse range of determinants that have a say in Bitcoin’s destiny. Recently, the crypto-sphere has been awash with reports of asset managers intending to re-introduce their spot Bitcoin ETF applications after the criticism from the Securities and Exchange Commission.
Under the SEC’s observant gaze, the exchanges will need to elaborate on the specifics of their “surveillance-sharing agreement” with a certain Bitcoin exchange.
There seems to be a glimmer of hope for the investors too. Despite witnessng an initial hiccup with Bitcoin’s price falling by over 3% post the SEC’s announcement, it soon bounced back and is currently hovering around $30,600. Experts believe the price could be coaxed higher in the coming days.
Tech investor and critic Tim Draper has adjusted his price prediction for Bitcoin, a significant $250,000, admitting to a slight delay in the time projection.
Apart from the predictability charts, Draper has also vocalized his apprehensions regarding the crypto regulation and the SEC’s mixed approach, that he feels is leading to uncertainty amongst innovators.
Despite the existing uncertainty, Bitcoin enthusiasts seem to be brimming with optimism, inciting considerable buying activity and swiveling the market upwards.
However, the flip side of these seemingly cheerful tidings is that Bitcoin’s rosy prospects could be marred by a challenging macroeconomic environment in the third quarter. This fact has been vouched by history which shows the average increase for Bitcoin during Q3 since 2014 being a mere 4.67%.
Add to this the magnifying scrutiny and regulatory pressures resulting from rising interest in Bitcoin ETFs, and we may see a period of tranquility in the crypto realm. The market might indeed see a calm before the storm in the coming three months.
The price of Bitcoin, the poster-child of cryptos, faces a stern test at its $31,000 hurdle. If it manages to sprint past this hurdle, there could be a windfall with $32,500 and $34,000 looming large.
On the other hand, failure to sustain support at $30,000 could lead to downward pressure, pushing Bitcoin to eye the next Fibonacci retracement levels.
For those willing to brave the crypto waters, it’s pertinent to track updates on the latest ICO projects and alternative cryptocurrencies. It could pay off well to keep up with the top 15 digital assets predicted by experts for their potential in 2023.
Finally, a word of caution, that while these digital assets promise huge returns, they come with inherent volatility and considerable risk. Delve into exhaustive research and tread with caution before making your cryptocurrency investment decisions.
Source: Cryptonews
