In an unpredictably bumpy month, Bitcoin has seen a nearly 1% decline on Tuesday, pushing its current value to $25,720. History has not been kind to Bitcoin in previous Septembers, a trend continued this year amidst regulatory delays and macroeconomic concerns. These hurdles stem from a growing US budget deficit that’s expected to result in an increased debt issuance – a confluence that puts Bitcoin in a precarious position due to its liquidity sensitivity.
Moreover, attention is being drawn to the Federal Reserve’s increasingly hawkish focus on rising “super-core” inflation rates, imbuing the financial market landscape, including the cryptocurrency sector, with uncertainty. Bitcoin evangelist Anthony Pompliano, however, retains a positive outlook, prophesying the imminence of a spot Bitcoin ETF despite regulatory setbacks. Echoing Pompliano’s sentiments, former SEC chair Jay Clayton deems such an approval as “inevitable.”
Simultaneously, on the legislative front, the “Digital Assets (Market Regulation) Bill 2023,” proposed by Australia’s Senator Andrew Bragg, is undergoing examination. The bill wants to realign regulatory measures aimed at digital assets, including the exclusion of non-fungible tokens (NFTs) as regulated digital entities. Changes in the stablecoin classifications and an extended transitional phase for new regulations are also part of the proposal.
The Australian legislative movement seeks to restore balance between innovation and consumer safety by establishing a fortified and regulated digital asset ecosystem. Consequently, enhanced regulatory pressures could exert influence on Bitcoin prices.
Meanwhile, JP Morgan’s team of analysts, led by Nikolaos Panigirtzoglou, predict a proliferating approval of Bitcoin ETFs in the wake of Grayscale’s recent triumph against the SEC. They conjecture that multiple spot Bitcoin ETFs could achieve simultaneous approvals instead of a single favoured applicant gaining an advantage.
However, the analysts anticipate any such ETF approvals to have a neglible impact on Bitcoin’s price. Despite the analysts’ reassurances, Bitcoin’s price struggles to summit the $26,200 peak, exhibiting a bearish pattern with resistances at $25,650, $26,000, and $26,200.
Looking forward to 2023, a potlatch of groundbreaking alternative cryptocurrencies await, which according to industry experts, promise potential returns for discerning investors. Nonetheless, cryptocurrency investments come with their fair share of volatility and risk. Therefore, due diligence becomes an indispensable part of making smart investment choices.
This article is designed to impart factual information and does not function as financial advice. Always remember to undertake your own research when engaging in cryptocurrency transactions.
Source: Cryptonews
