The empress of the crypto realm, Bitcoin (BTC) is currently gasping, losing nearly 0.50% of its value, and standing precariously at $29,400. While market inhabitants scurry about, two significant events loom on the horizon – the third Bitcoin halving, scheduled for April 26, 2024, and an urgently-awaited decision by the US Securities and Exchange Commission (SEC) on an ETF application.
Every four years, the block reward of Bitcoin reduces by half, intensifying its scarcity allure. April 26, 2024, will witness this reduction to 3.125 BTC, with the aim to manage inflation rates. The ensuing tightening of Bitcoin’s supply draws parallels with gold’s deflationary attribute. Historically, these events have led to considerable price appreciation. With Bitcoin’s total supply capped at 21 million, a potential surge in prices due to increased demand and reduced supply following the halving is eagerly anticipated.
On the other side of the spectrum, the SEC is readying to drop a verdict on the ARK 21Shares Bitcoin ETF. The uncertainty surrounding this affair has heightened the pressure on BTC prices. Despite the proactive endeavors of financial giants like BlackRock, Bitwise, Van Eck, and Wisdomtree to acquire regulatory approval for their Bitcoin ETF offerings, fears of market manipulations and liquidity issues cast a shadow on these plans. This uncertainty has only added to the hurdles faced by ARK 21Shares in its quest for approval.
Adding a twist to this ongoing narrative is the report of a 3.2% rise in US inflation in July by the US Bureau of Labor Statistics. This report was marginally short of the market’s expectation of 3.3%, inviting uncertainty in the trajectory of BTC’s price. Historically, BTC has utilized inflation-induced winds to propel it to unprecedented heights. However, this time, BTC remains below $30,000, indicating that the market is desperately seeking a catalyst to surge past this resistance level.
In the current scenario, BTC appears to be stuck in a no man’s land, struggling around the $29,400 to $29,600 mark. Were it to break past the $29,600 barrier, it could expose BTC to the $30,200 level. If it descends, it may find support at $29,250. Overcoming the $30,200 level of resistance might thrust BTC to the range of $30,600 – $31,000. Yet, a dip below this critical zone could well drive BTC into a bearish zone.
In the midst of these uncertainties, to stay ahead in the volatile world of cryptocurrencies, our followers can explore the top 15 crypto assets to watch in 2023, selected by experts at Industry Talk and Cryptonews. However, as always, exercise discretion while investing in cryptocurrencies as they are high-risk assets.
Source: Cryptonews
