Anticipating Volatility Ahead for Bitcoin as SEC Considers Spot ETF Approval
Market observers are predicting potential volatility in the price of Bitcoin (BTC) due to increased on-chain activity and the pending approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC).
BlackRock is expecting positive news regarding its spot Bitcoin ETF application from the SEC by January 10, which coincides with the deadline for approving or rejecting the ARK 21 Shares spot Bitcoin ETF application.
Bitcoin ETF Decision Expected Soon
Bloomberg senior ETF analyst Eric Balchunas believes that SEC Chair Gary Gensler is likely to support the launch of a Bitcoin ETF. Balchunas points out that Gensler has not provided any substantial grounds for refusal and has actively engaged with Bitcoin ETF applicants.
“[Gensler] is literally the one who directed the staff to put in thousands of man-hours to work with 11 issuers on 5-10 rounds of comments, and most recently telling them they want these lined up for 1/11 launch,” Balchunas stated.
Satoshi Nakamoto’s Wallet Receives $1 Million Worth of BTC
An unidentified individual transferred over $1 million worth of BTC into Satoshi Nakamoto’s wallet, sparking speculation within the crypto community. The transaction has led to theories ranging from Nakamoto’s potential return to an unconventional marketing strategy related to the upcoming Bitcoin ETF.
“Either Satoshi woke up, bought 27 bitcoin from Binance, and deposited into their wallet, or someone just burned a million dollars,” said Conor Grogan, a director at Coinbase.
Increased Whale Activity Indicates Potential Market Volatility
Bitcoin whales, including the enigmatic transaction involving Nakamoto’s wallet, have been engaging in heightened activity. This suggests that market volatility may be on the horizon. Blockchain security firm Santiment reports that whale transactions have reached their highest level since June 2022.
“There may be some volatility ahead with whale transactions hitting their highest level since June 12, 2022. When whale activity spikes, prices often foreshadow a breaking cycle,” Santiment said.
Hot Take: Bitcoin Price Remains Steady Amidst Pending ETF Approval
Bitcoin’s price has remained relatively stable over the weekend, briefly surpassing $44,000 before retracing to $43,986. As anticipation builds for the SEC’s decision on the spot Bitcoin ETF applications, market observers expect potential volatility in the near future.
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