Bitcoin Consolidates; Waiting for a Boost from SEC ETF Ruling
A bullish setting has emerged as the price of bitcoin remains relatively stable between the $29k and $30k range in anticipation of a ruling by the SEC on a proposed exchange-traded fund (ETF). Today, the most popular cryptocurrency traded at $29,350, down 0.36%, with $11.5 billion changing hands. Bitcoin’s market worth is $571 billion.
Global financial behemoths like Blackrock and Fidelity Investments have entered the fray for a Bitcoin exchange-traded fund. Bitcoin’s price has been consistently low, first testing support around $32,000 before settling into a tight range between $29,000 and $30,000.
All Eyes on SEC
Bitcoin’s price was unaffected by the recent spike in proposed spot Bitcoin ETFs, but investors are still holding their breath to see whether the SEC’s decision to accept or reject these proposals would cause a reversal in the crypto market.
However, after an initial extension, the SEC has a second deadline to act on ARK Invest’s petition. Cathie Wood, the company’s creator, claims that more time will be needed, even though the SEC’s examination period closes on August 13.
According to Wood, the likelihood of the SEC approving many Bitcoin ETFs at once increases if the SEC authorizes a spot Bitcoin ETF.
There are presently eight proposals on the table, but the Bitcoin ETF application from ARK Invest and 21Shares are the frontrunners. With selling pressure at $29,445 led by the 200-day Exponential Moving Average (EMA), Bitcoin’s price is supported above $29,000 but unable to break through resistance above $30,000. The outcome of the ETF application will have a strong effect on the volatility of BTC along with the sector as a whole.