Sitting slightly beneath the $27,000 threshold, Bitcoin exhibited a slight 0.50% dip in value early on Wednesday, impacting the wider crypto market cap – a slight descent of 0.46% was noted, reducing it to a neat $1.05 trillion. This cooled performance stemmed largely from Bitcoin’s and Ethereum’s struggles, leading to a market-wide slowdown. Behind this Bitcoin depreciation may be the SEC’s decision to defer verdict on the Ark 21Shares Spot Bitcoin ETF, a move possibly shaking investor sureness and catalyzing short-term price tremors. Additionally, Bitcoin’s tranquility in volatility is witnessing lower trading involvement and blighted trader zeal, courtesy of fewer chances for meaningful profitability and the murky ETF approval timeline.
While the situation might seem grim, Bitcoin’s blockchain’s landmark achievement of over 900 million transactions and Microstrategy‘s investiture have both revitalized the market, nudging Bitcoin over the $26,000 mark. Moreover, the Federal Reserve’s potential upliftment of interest rates as an inflation buffer alongside other recent events may bestow a promising outlook on Bitcoin’s future.
Traders are now keeping a closer eye on the Fed Chief’s anticlimatical speech on Thursday, underlining future interest rate hikes, instilling a sense of unease, and seeing prospective spikes in borrowing costs which will impact various economic sectors. This development may indeed make Bitcoin a more tempting prospect as an economic turbulence safeguard.
Within the U.S, a team of lawmakers including Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel, are lobbying with SEC Chair Gary Gensler for a quicker Bitcoin ETF approval. Their appeal underscores the potential of improved investor protection via a regulated ETF, improving Bitcoin’s accessibility. These lawmakers are also disconcerted about the SEC’s sluggish pace given the substantial interest expressed by major establishments like BlackRock and Fidelity. With Bitcoin ETF approval still uncertain and investors pinning hopes on lawmakers’ plea to expedite the process, the relief might soon be in sight.
Examining the technical paradigm of the BTC/USD mix, Bitcoin is found clutching tight to the psychological support of $26,000 while facing resistance at around $26,400. A convincing surge above this would possibly see Bitcoin reach for a $26,700 target and overcoming this benchmark could lead to further resistance levels – $27,200 and then $27,500.
Casting a similarly watchful eye on alternatives, we regard 2023 with anticipation, tracking fifteen cryptocurrencies and ICO projects demonstrating promising potential for rewarding investments. So stay in touch with us for our industry-expert research-backed insights and updates. Remember to invest with prudence, as the volatile nature of cryptocurrencies can result in significant gains or losses.
Source: Cryptonews
