Key Factors That Could Influence the Price of Bitcoin in the Coming Months

Gareth Soloway identifies two key factors that could impact the price of Bitcoin in the coming months

Gareth Soloway, a trading expert and chief market strategist at InTheMoneyStocks.com, has highlighted two crucial factors that could significantly influence the price of Bitcoin (BTC) in the near future. These insights come at a time when Bitcoin is in a consolidation phase and market observers are speculating about a potential rally. Soloway’s analysis underscores the need for investors to stay alert to any developments regarding ETF approvals and potential delays, as well as to closely monitor government bond yields.

Factor 1: Spot Bitcoin ETF

Approval of a spot exchange-traded fund (ETF) would be a significant milestone for the cryptocurrency industry, attracting institutional investment and mainstream recognition.
ARK Invest’s spot ETF was delayed, but not rejected.
Investors should stay vigilant about ETF approvals or delays, as they could lead to short-term fluctuations in Bitcoin’s price.

Factor 2: Government Bond Yields

A rise in the 10-year Treasury yield (above 3.3%) could put pressure on Treasury bonds and trigger selling by the U.S. government.
Historically, there is a correlation between yields and Bitcoin’s performance.
Rising yields could indirectly impact cryptocurrency markets due to the challenges posed by substantial U.S. debt and its potential consequences on the broader economy.

Bitcoin Halving Caution

The market expects the Bitcoin halving to trigger a rally, but Soloway cautions against this expectation due to the macroeconomic environment, including a potential recession.
He points out that the halving has not occurred in a situation where the Federal Reserve is not aggressively lowering interest rates and engaging in quantitative easing.
Soloway believes Bitcoin may “flush out” back to $20,000 by the end of the year before rallying again.

Gareth Soloway’s insights provide valuable guidance for crypto investors, reminding them to monitor ETF approvals, government bond yields, and the potential impact of the Bitcoin halving. Staying informed about these factors can help investors navigate the dynamic Bitcoin market.

Hot Take: The approval of a spot Bitcoin ETF and the movement of government bond yields are important factors to watch for anyone interested in Bitcoin. These developments could significantly impact the price of Bitcoin in the coming months. Additionally, Soloway’s cautionary note about the Bitcoin halving and the macroeconomic environment provides valuable insight for investors. Overall, it is crucial for crypto readers to stay informed about these key drivers to make informed investment decisions.