Bitcoin Experiences Volatility
Bitcoin recently faced a sharp decline, erasing most of its early gains this year. Fadi Aboualfa, head of research at crypto custodian Copper Technologies, highlighted the expected increased volatility in the short term.
SEC Decision on ETFs
One of the main points of discussion was the upcoming decision by the Securities and Exchange Commission (SEC) regarding Bitcoin Exchange-Traded Funds (ETFs). Aboualfa emphasized the anticipation of heightened market fluctuations, especially with the critical date of January 10th approaching.
Importance of ETF Approval
Aboualfa mentioned on Bloomberg Technology the significance of this moment in the history of cryptocurrencies, noting that discussions have shifted from questioning the approval of ETFs to predicting when it will happen. ETF approval is inevitable, but the timing remains a focal point, causing some short-term volatility.
Potential Bitcoin Drop
Aboualfa suggested the possibility of Bitcoin dropping to $37,000 or even $27,000 based on blockchain activity and correlation with traditional markets.
Bitcoin’s Correlation and Future Inflows
Aboualfa addressed Bitcoin’s current trading similarity to a tech stock and discussed the potential scale of inflows that could occur once a spot Bitcoin ETF is approved. He emphasized the need to differentiate between short-term traders and long-term investors in the crypto market.
Hot Take: The Impact of SEC Decisions on Bitcoin’s Future
The looming decision by the Securities and Exchange Commission (SEC) regarding Bitcoin Exchange-Traded Funds (ETFs) is expected to intensify market fluctuations. As the critical date of January 10th approaches, the uncertainly surrounding ETF approval is predicted to contribute to the current volatility. The approval of ETFs is inevitable, but the timing remains a focal point for the markets, causing some short-term volatility.
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