Bitcoin’s Boring Price Movement Continues
Bitcoin made a sharp upside move during the second half of June 2023. But after testing the $31,431 level, Bitcoin entered a sideways zone and struggled for more than a one. Last week, Bitcoin broke below the support of that sideways zone but it didn’t change its nature and remained rangebound throughout the week.
The price isn’t showing any sharp move due to a mix of positive and negative news. The following news may shed some light on where Bitcoin may head in the near future.
Key Takeaways: –
- The SEC has asked Coinbase to halt trading of all crypto assets except for Bitcoin, which highlights the regulatory challenges cryptocurrencies face in the United States.
- Binance has obtained a license to offer digital asset broker-dealer services in Dubai, setting the stage for global expansion.
- Mark Yusko, CEO of Morgan Creek Capital Management, predicts that Bitcoin could reach $300,000 by 2028, comparing Bitcoin to gold’s monetary value.
- Whales are accumulating stablecoins, indicating potential future price movements for Bitcoin.
SEC has Asked Coinbase to Delist Everything Except Bitcoin
Brian Armstrong, the CEO of Coinbase, claimed in a recent interview that the SEC has asked the crypto exchange (Coinbase) to halt the trading of all crypto assets except for Bitcoin. That’s because SEC believes that other than Bitcoin every asset is a security. SEC didn’t provide any further explanation of the request even though the Coinbase team didn’t agree with this interpretation of the law.
SEC has been following this stance consistently that every asset comes under the jurisdiction of the SEC except for Bitcoin. SEC sued Coinbase when Armstrong refused to fulfill their request. SEC’s enforcement division has explained the scenario saying that the agency can share its views on activities that can potentially violate securities laws.
This shows that cryptocurrencies are facing serious regulatory problems in the United States.
Blackrock’s BTC ETF Needs Support from Bitcoin Miners
Bitcoin’s price significantly increased after the news of Blackrock’s Bitcoin ETF application because it’s backed by leading financial institutions like Fidelity, BlackRock, and Ark Investments. The investors are confident that the approval of this ETF will bring significant institutional capital into the digital asset.
It will provide institutions with direct access to Bitcoin which may potentially increase the asset’s value. However, it can also significantly reduce the mining sector’s profitability. However, the miners haven’t shown any concerns about such issues. And historically, they’ve played a vital role in building a decentralized network.
The addition of a BTC spot ETF will highlight the role of miners in different industries. Similarly, the miners aren’t just limited to Bitcoin and they’re exploring new business endeavors such as Ethereum and Artificial Intelligence.
Binance to Offer Crypto Broker-Dealer Services in Dubai
Binance, one of the leading cryptocurrency exchanges, has obtained a new license from Dubai’s Regulatory Authorities. The company’s subsidiary, Binance FZE, can now offer digital asset broker-dealer services in Dubai. Under this license, the company will be able to provide crypto-to-fiat exchange services in Dubai. However, they can only serve institutional and qualified investors for now.
With this new license, Binance will focus on setting the stage for global expansion while providing satisfactory service to the users.
Bitcoin Price Prediction by the CEO of Morgan Creek
The CEO of Morgan Creek Capital Management, Mark Yusko, has predicted that Bitcoin could reach $300,000 by 2028. He has drawn a comparison between Bitcoin and gold saying that Bitcoin overcomes the portability and divisibility limitations of gold. Bitcoin will reach the $300,000 level if it replaced gold’s monetary value.
Yusko has backed his claims with historical patterns. He said that Bitcoin experiences a significant price surge after each halving event. So, Bitcoin may continue following a similar trend. He said that Bitcoin will potentially reach the $100,000 level following the upcoming halving.
Some other industry experts have also made similar price predictions. Matrixport, the crypto services provider has predicted that Bitcoin could reach $125,000 by the end of 2024. Similarly, Standard Chartered has predicted a $120,000 level for Bitcoin by the end of this year.
Whales are Accumulating Stablecoins
The recent data shows that whales are increasing their holdings of stablecoins like BinanceUSD, USDT, DAI, and USDCoin. This significant shift is experienced after Bitcon’s price dropped below $30,000. So, the whales are probably getting ready to buy Bitcoin at lower rates.
Whales can establish a bullish trend by accumulating Bitcoin. Bitcoin’s price could potentially boost if the whales started exchanging their stablecoin holdings for Bitcoin. However, they can also initiate a negative trend if they started withdrawing their Bitcoin holdings. The accumulation of stablecoins is just a hope for future price movement.
Bitcoin Weekly Technical Analysis
Bitcoin has traded in a tight range throughout the week after breaking the $30,000 support. Bitcoin may again come to retest this level before further price drops. The continuously dropping volumes show that most Bitcoin holders aren’t ready to sell their holdings. So, it will be too early to say anything about the future price movement unless the volumes start adding.
However, in the short term, Bitcoin’s price may recover to retest the $30,200 to $30,400 range.
Conclusion
Bitcoin’s price remains rangebound amid a mix of positive and negative news. Regulatory challenges persist, with the SEC’s request to Coinbase and Blackrock’s BTC ETF application impacting market sentiment. Whales accumulating stablecoins hint at potential price movements. The short-term outlook is uncertain, but industry predictions suggest a potential for significant price surges in the future, making Bitcoin a closely watched asset.
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