There is an important development for the cryptocurrency Bitcoin. It looks like the Securities and Exchange Commission (SEC) will change its stance on spot Bitcoin exchange-traded funds. This outbreak fueled speculation for a rally for BTC. Also, data shows that major institutional players are increasing their Bitcoin holdings. Let’s look at the details
Important data for cryptocurrency Bitcoin
This can be effective for stock-based, crypto-related exchange-traded funds such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO). In fact, it already is, as SATO has risen by a staggering 147% year-to-date.
Bitcoin has been on an uptrend for the past few weeks as a number of traditional asset managers, including some of the biggest names in the ETF industry, have applied for spot Bitcoin ETFs. This is a sign that trusted money managers and fund issuers are seeing long-term viability in this cryptocurrency. Therefore, the digital asset’s fund holdings are approaching 696,000 coins.
Why is it important to SATO?
SATO tracks the Alerian Galaxy Global Cryptocurrency Focused Blockchain Stocks, Trusts and ETPs Index. Most of the 35 stocks in the index are engaged in crypto mining. This industry is associated with the prices of the assets being mined.
So, as Bitcoin prices rise, SATO holdings get more benefits. A clear and effective way to drive higher Bitcoin prices is for more institutional buyers to enter the market. But these buyers are not just buying in large volumes. It also lends credibility to an asset class that has long faced small investors’ suspicions and concerns about volatility and excessive speculation. On the other hand, more importantly, recent news of Bitcoin new entrants underline the lasting power of this asset class more generally. Grayscale CEO Michael Sonnenshein said in an interview with CNBC that many investors see this as a once-in-a-generation investment opportunity.
Major candidate
Grayscale is the company behind the Grayscale Bitcoin Trust (GBTC). This Bitcoin-backed index is SATO’s largest holding at 15%. It is a prime candidate for conversion into an ETF package if the SEC approves spot bitcoin ETFs.
Other data points, including the decline in the number of Bitcoins on public exchanges, confirm institutional adoption and individual investors holding Bitcoin longer. Both could be crucial in establishing short-term price support for the cryptocurrency.
Rally expectation for cryptocurrency Bitcoin
Seeing the end of Bitcoin’s (BTC) 2021 bull market, a trader predicts a massive rally for the crypto king. However, a downward movement is also expected before this rally. Analyst Pentoshi addressed his 697,700 Twitter followers. He says that Bitcoin is now likely heading towards $28,000 after failing to stay above $31,000.
According to the trader, he expects Bitcoin to eventually regain its bullish momentum. Also, a correction below $30,000 will likely be short-lived as it expects a fresh rise to 2023 highs. After that, the journey towards 40 thousand dollars will begin. The analyst also predicts a Bitcoin pullback. Accordingly, he says the larger trend remains bullish for the crypto king.
Bitcoin analyst DonAlt expects 30% drop
In a YouTube video released Friday, DonAlt said that if Bitcoin loses the $30,000 level, it could see a drop of up to 30%. According to the analyst, Bitcoin experienced a rally following positive developments, which included the submission of Bitcoin spot exchange-traded fund (ETF) applications and the taking of an important decision regarding XRP. However, he is of the view that the impact of these events may be diminished. Accordingly, he warned that it could potentially cause a sharp drop in the value of BTC.
DonAlt “price is higher than yesterday. And I am much more bearish on Bitcoin right now than yesterday,” he says. He also said, “I am not fully in a downtrend yet. Overall, the great thing about Bitcoin right now is that basically, this move started with good news. $30,000 is a strong level.” says.
Will it lose value?
According to DonAlt, Bitcoin could gradually lose value before the entire crypto market plunges. cryptocoin.com Looking back at the video, he said, “I think if we lose both, we basically lose the news impact and we lose the $30,000 psychological level, I think it’s going to collapse. Like the appropriate nuclear bomb level. You get a 10%, 20%, 30% drop almost instantly.” says.
The analyst stated that his gut feeling is pointing to a bearish direction in the market. He also explained multiple reasons for adopting an extremely defensive stance. That said, DonAlt says what will happen if there is a gradual decline over the next few days. Accordingly, he stated that he believes altcoins can gain some momentum. He predicted that some altcoin-related activity might still exist during this time. At the time of this writing, Bitcoin was trading at $30,306, up one percent over the past seven days.
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