In the most recent episode of The Market Report, Marcel Pechman, an analyst and writer, examines data to determine if Bitcoin, currently at $30,771, will ever reach a price of $27,000. While some experts credit BlackRock’s spot Bitcoin ETF application for the recent 21.5% increase in Bitcoin’s value, there may be other factors contributing to the cryptocurrency’s rise as well.
According to Pechman, the regulatory landscape for cryptocurrencies in the United States has seen an improvement after a series of enforcement actions targeting exchanges accused of operating as unregistered securities brokers. However, the U.S. Securities and Exchange Commission’s actions have faced opposition from both Congress and the Federal Reserve, highlighting the conflicting perspectives within the U.S. government regarding crypto regulation.
Pechman has pointed out how Bitcoin futures and margin markets indicate restored trust, even after the significant increase in Bitcoin’s value. Normally, traders expect a decline after a gain of 20% or more, which tends to create a sense of distrust. However, the fact that there is confidence in the market bodes well for Bitcoin bulls, who now have an advantage in maintaining the support level of $27,000 for Bitcoin’s price.
Pechman poses a question regarding ARK Investment Management’s spot Bitcoin ETF application, which is said to be the first in the queue for approval by the SEC. He points out that the ETF has been a long-awaited goal for the last six to seven years, yet the regulator’s complaints about it remain unchanged.
Additionally, it is important to take into account the regulator’s concerns regarding stablecoins, as they have a significant impact on the pricing dynamics of exchanges catering to clients based in the United States. However, Pechman advises against underestimating trillion-dollar money management firms and suggests that it would be unwise to bet against them.
According to Pechman’s estimates, the U.S. spot Bitcoin ETF could attract $20 billion in market capitalization within a couple of years. Consequently, it makes sense to buy Bitcoin now if you believe that the ETF will be approved in the next year or so.
