Bitcoin Spot ETF Approval and the Influence of the Federal Reserve

The Inevitable Approval of Bitcoin ETF

Bloomberg Intelligence analyst Mike McGlone believes that the approval of the first Bitcoin spot ETF in the United States is “inevitable.” However, he also highlights that the Federal Reserve remains a bearish influence on all risk assets, including Bitcoin. Despite the trend towards economic contraction, the Fed is still tightening, which could create downward pressure for Bitcoin and stocks.

The Fed’s Impact on the Crypto Market

The ongoing hawkishness of central banks worldwide poses a risk to Bitcoin and the crypto market.
Fed chairman Jerome Powell’s commitment to curbing inflation and the lack of expected rate cuts until 2024 is bad news for the crypto market.
The crypto market has historically reacted to the Fed’s easing and tightening cycles.

$30,000 Key Pivot Level for Bitcoin

McGlone identifies $30,000 as a crucial level for Bitcoin. If Bitcoin reaches this level, it could indicate a reversal upward. Currently, Bitcoin is trading at $27,200. McGlone compares this level to the $12,000 level in 2020, which Bitcoin surpassed before embarking on a major rally.

Hot Take: Federal Reserve’s Influence on Bitcoin ETF Approval

While the approval of a Bitcoin spot ETF in the US seems inevitable, the Federal Reserve’s actions could still impact the crypto market. The ongoing tightening and lack of rate cuts from the Fed may continue to create downward pressure for Bitcoin. Traders should closely monitor the Fed’s stance and its potential effects on the crypto market.