All eyes on potential catalysts for Bitcoin’s path in 2023
All eyes are on the potential catalysts that could influence bitcoin’s path during the rest of 2023, with bitcoin holders remaining steadfast despite a 10% market drop in two hours last week.
Main breakdown of key points:
- The court case between Grayscale and the Securities and Exchange Commission could result in Grayscale’s GBTC product being converted into a spot bitcoin ETF, potentially impacting other pending spot bitcoin ETF applications.
- The outcome of the SEC’s cases against Binance and Coinbase could also affect the market.
- If the crypto bills currently being considered by the U.S. House pass with sufficient support, it could lead to positive market response and force Senate action.
- Weakening bond markets and rate increases from global central banks may pose as headwinds for bitcoin, but an end to the rate hikes could lead to improved performance.
- The speculation surrounding Bitcoin’s April 2024 halving event is also noted as a potential catalyst.
A sudden market jolt
Last Thursday, bitcoin prices experienced a sharp decline, dropping over 10% within just two hours and falling below its 200-week moving average.
Long-term holders undeterred
While short-term holders face unrealized losses, long-term holders, especially those with 10 bitcoin or less, continue to accumulate and hold for longer. A record 40% of bitcoin’s supply has remained stationary on-chain for over three years.
Hot Take:
The outcome of the court case between Grayscale and the Securities and Exchange Commission, along with developments in the SEC’s cases against Binance and Coinbase, will be crucial for the future of bitcoin. Additionally, the passage of crypto bills in the U.S. House and the speculation surrounding Bitcoin’s halving event could also impact the market. Despite short-term volatility, long-term holders remain confident in bitcoin’s potential.
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