Last week, some analysts were afraid of the effects of the Israeli-Hamas conflict on Bitcoin because Bitcoin is a risky asset. And investors prefer safe havens like gold during such critical times. However, some analysts were confident that Bitcoin would sustain the negative effects. And Bitcoin displayed strong resilience throughout the week.
On Monday, Bitcoin’s price even jumped to $30,000 following fake news by Cointelegraph. Although Cointelegraph has given the clarification, the investors think there’s some truth behind the news. The price is currently struggling close to the daily resistance of $28,550. But some investors think it may again reach the $30,000 over the coming days.
The following Bitcoin weekly news may give an idea of how Bitcon’s price may behave in the near future.
Clarification by Cointelegraph
Cointelegraph is a renowned platform that regularly shares information about Bitcoin and the crypto market. On Monday, they accidentally shared the news of the approval of a spot Bitcoin ETF on X (formerly known as Twitter). Cointelegraph has apologized for sharing unverified news on social media.
Cointelegraph didn’t publish any article about this news. The problem began when a user shared an unconfirmed screenshot on social media. However, Cointelegraph apologizes for their employee’s deviation from the standard procedure. The platform has shared details about how this incident occurred. The team is now working on updating their social media management processes to avoid such incidents in the future.
$5.7 Billion Worth of Transaction Took Place in Bitcoin Futures Following Fake News
The false ETF report by Cointelegraph significantly increased the trading activity in the crypto market. The price of Bitcoin surged to $30,000 following this update. Even a whale purchased $5.7 billion worth of Bitcoin futures contracts following this news. As a result of the news, $42 million worth of shorts were liquidated.
The trading activity reached a pretty high level after the false ETF report. But as discussed earlier, Cointelegraph apologized for the unconfirmed news and they’ve also announced that they will be taking strict actions to avoid these problems in the future.
SEC’s Warning for Investors
Following the effects of recent fake news, the SEC has stepped forward to warn investors about unofficial sources. SEC highlighted that the price of Bitcoin surged when a false report about spot ETF approval was spread on social media. As a result, many investors got trapped because Bitcoin’s price dropped immediately after that pump.
SEC has emphasized that investors must explore the SEC’s official website when they hear such news. Although the news report was fake, some industry experts like Cathie Wood of Ark Invest are still confident that the SEC will approve the Bitcoin spot ETF soon. She thinks it will pave the way for approval for multiple ETF applications. It’s worth noting that Cathie’s company has also applied for the ETF approval.
Some analysts have predicted that a Bitcoin ETF will potentially be approved by January 10 because the SEC is actively engaging with the ETF applicants.
Bitcoin Price Prediction by CryptoQuant
CryptoQuant, a renowned data analytics firm has recently reported that Bitcoin’s market cap may reach around $900 billion if a Bitcoin spot ETF is approved. Bitcoin’s demand surged significantly when the institutes started showing it on their balance sheets. Investors may expect a similar response once the institutes start providing Bitcoin access to their customers.
Most Bitcoin spot ETF applicants are confident that their application will be approved by March 2024. The analytics firm is expecting an inflow of $155 billion if the ETFs are approved. It will most probably bring Bitcoin’s price to $50,000-$73,000. The company highlighted that Bitcoin’s price surged significantly following fake news. So, the investors may imagine how the price will increase if a Bitcoin spot ETF is actually approved.
Bitcoin’s Rising Dominance is an Alarming Sign for Altcoins
Bitcoin’s dominance is a key factor that shows the investor’s interest in the crypto market. According to data, Bitcoin Dominance has reached a 2.5-year high of 52.45%. Some analysts are predicting that it will reach the 58% level over the coming weeks. So, it’s an alarming sign for altcoins because they won’t perform well if more investment is moving towards Bitcoin.
The altcoins offered amazing returns while Bitcoin was struggling in a range. But the rising Bitcoin Dominance is now indicating that Bitcoin may outperform altcoins in the near future.
Bitcoin Price Models
CryptoCon, a renowned trader, has predicted that Bitcoin may reach $128,000 or more by the end of 2025. The analyst is expecting a target of $130,000 during the next price cycle of Bitcoin. He has backed his analysis with the previous BTC price cycles. On the other hand, some other analysts think that Bitcoin may test a new local low before the end of 2023.
However, a number of historical price models suggest that Bitcoin may reach the $128,000 level. That’s why CryptoCon is optimistic about Bitcoin’s price.
Bitcoin Weekly Technical Analysis
Bitcoin’s price jumped to $30,000 following the fake news report on Monday and the price immediately dropped on the same day. However, the current price movement shows that Bitcoin still has the potential to retest the $30,000 level. And it may even break that resistance over the coming days because $30,000 is working as a strong psychological level for a few weeks.
The way Bitcoin’s price dropped during the third week of August was quite disappointing for Bitcoin holders. However, Bitcoin has gradually absorbed that selling price and it may now continue moving into the sideways channel that it started in April 2023.
Bitcoin’s recent rollercoaster ride, triggered by a false report of a spot Bitcoin ETF approval, underscores the cryptocurrency market’s susceptibility to misinformation and its profound impact on trading activity. Despite the market’s resilience and optimism about potential ETF approvals, investors are reminded to exercise caution and rely on official sources like the SEC. While Bitcoin’s dominance is rising, signaling its strength in the crypto market, its future performance remains a subject of debate among analysts.
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