In the latest episode of The Market Report, analyst and writer Marcel Pechman analyzes some data to conclude whether Bitcoin (BTC) will ever trade at $27,000. Some analysts attribute Bitcoin’s recent 21.5% gains to BlackRock’s spot Bitcoin exchange-traded fund (ETF) filing, but other events might have also fueled the cryptocurrency gains.
Pechman asserts that, following a period of enforcement actions by regulators against exchanges allegedly acting as unregistered securities brokers, the United States crypto regulatory environment has improved. More recently, the U.S. Securities and Exchange Commission has drawn opposition in Congress and the Federal Reserve. That shows just how conflicting the U.S. government’s views on crypto regulation are.
Pechman shows how Bitcoin futures and margin markets show confidence being restored despite the price rally. Some distrust would normally be expected as traders expect a pullback after a 20% or higher gain. Consequently, Bitcoin bulls should now have the upper hand to sustain the $27,000 Bitcoin price support level.
Next, Pechman raises a question on the ARK Investment Management spot Bitcoin ETF request, which is reportedly the first in line for the SEC’s approval. Pechman highlights that the ETF has been a distant dream for the past six or seven years, and nothing has changed regarding the complaints from the regulator.
Moreover, the regulator’s claims about stablecoins are definitely something to be considered because that’s also heavily impacting the price formation on exchanges servicing U.S.-based clients. Still, Pechman advises not to bet against trillion-dollar money management companies.
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.
Lastly, the show discusses why miners are adding equipment ahead of the 2024 Bitcoin halving. Don’t miss it! The Market Report airs exclusively on the new Cointelegraph Markets & Research YouTube channel.
Source: https://cointelegraph.com/news/will-bitcoin-ever-trade-below-27-000-again
