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The last few days show the confident dominance of bulls in the market. Bears are not showing much activity yet, traders expect that Bitcoin will be able to overcome the $ 60,000 mark and gain a foothold there.
But will the asset be able to hold its position, because there are factors that can bring it down. We are talking about the fact that the US Securities and Exchange Commission should soon make a decision on 2 Bitcoin exchange-traded funds (BTC ETFs) in the near future.
SEC Chief Gary Gensler has no particular complaints about ETFs based on futures traded on the market.
What does such a decision matter for Bitcoin? Another catalyst depends on it, which may well raise the asset above the $60,000 mark. In turn, funds working with BTC will be able to provide operational access to the asset for many users, which means that the price of Bitcoin will go up.
The news about the adoption of such a tool is one of the key ones for this market cycle. The mere mention of it pushed the price of BTC up every time. Therefore, the topic has become highly speculative, and, definitely, it will not be given so easily on an ordinary day, but will prepare the necessary ground for this. Even Bloomberg’s involvement in this issue suggests a likely speculation.
We already have confirmation of the use of the news background for our own purposes. It is worth remembering the situation of 2017-2018.
Recall that a few years ago there was a similar situation. In 2017, the market was growing on the expectation that CME would release Bitcoin futures. And indeed, the market grew by more than 20% when futures were included in the listing. And then, unexpectedly for many, the bullish trend abruptly turned bearish and the market collapsed by more than 80%.
A similar opinion is shared by Bitcoin skeptic Mr.Whale, who believes that in the near future we will see an increase in volatility:
“A serious concern regarding futures is the manipulation of prices by Wall Street. In 2017, BTC peaked on the day of the futures launch. We could see a quick launch of FOMO followed by a crash. Expect significant volatility in the coming weeks and try to avoid long and short margin trading.”
Mr.Whale is confident that futures ETFs will be one of the biggest bull traps ever. Almost everyone who tried to play futures in 2017 faced difficulties when Bitcoin fell by 85% after the launch of the tool.
A Repeat of the Bitcoin ETF Situation
The same thing happened when the market was waiting for IPOCoinbase, and when the first public auction began, Bitcoin increased in value and its price was equal to almost $ 65,000, and then the bears brought down the market, and the price of the asset fell by more than 53%.
No one can guarantee that such a situation will not happen again. The next few weeks will be extremely important for Bitcoin. The price can really rise sharply, and then collapse.
Author: Vadim Gruzdev, analyst Freedman Club Crypto News
#Bitcoin #Collapse #Accepting #Bitcoin #ETFs