The anticipation of a retest in the psychological threshold of $30,000 has left a trace of new-found hope in Bitcoin’s market. This longing is predicated on the projected approvals for spot Bitcoin Exchange Traded Fund (ETF) applications and the growing acceptance of the broader crypto space. As an upshot of these positive sentiments, the digital currency market’s firstborn saw a surge of about 2.5%, possibly marking its most lucrative single-day performance since mid-July.
Mike Novogratz, an influential crypto billionaire and CEO of Galaxy Digital, is vocal about the inevitability of BlackRock and Invesco’s spot bitcoin ETF applications’ sanctioning, hinting at a timeframe of about four to six months. Kathie Wood of Ark Invest echoes a similar optimism, emphasizing that the SEC is expected to approve more than one ETF at once. Such approvals would pave the way for considerable institutional funds flow into Bitcoin, potentially accelerating its value.
Alongside this bullishness, there is also news of PayPal’s plan to launch its Ethereum-based USD-pegged stablecoin, termed PayPal USD (PYUSD). This one-to-one redeemable stablecoin, set to be available on PayPal and Venmo, could significantly enhance crypto adoption, considering PayPal’s user base surpasses 400 million daily active users.
On the technical end, Bitcoin’s rally boosts its continuation in its 2023 uptrend. If it surpasses the 50-Day Moving Average, currently at $30,000, predictions of a run towards yearly highs in the upper $31,000s could be plausible. However, underlying macro risks, such as the upcoming inflation data release, can potentially deflate the buoyant sentiment.
July’s YoY CPI inflation data, anticipated Thursday, may see a slight increase to 3.3%, but expectations are for the MoM readings to remain stable at 0.2%. If the trend stays course, Federal Reserve doves might find support in their argument against further rate boosts, though with core inflation lingering above 2.0%, the likelihood of near-term rate reductions appears minimal.
To sum up, while the data suggests an ongoing disinflation trend, any sudden shift could potentially cause short-term volatility, given the market’s reactions to US dollar and US bond yields. Notwithstanding the potential hurdles, Bitcoin retains a prospectively positive bias in the short term. However, all eyes remain on the upcoming data release combined with the anticipated marketing shifting events.
Source: Cryptonews
