Current Status and Predictions
As of Thursday morning this week, Bitcoin is currently trading at $26,036, marking a decline of 1.25% in the past 24 hours, according to CoinDesk data. However, this price is still far from its peak of over $65,000 back in November 2021. Industry insiders are now speculating on what the future holds for Bitcoin.
Can Bitcoin Maintain its Current Position?
Michael Dunn, the president of Binomial Exchange, a Bitcoin futures and options exchange, believes that despite the recent drop in price, Bitcoin’s volatility remains near all-time lows. He suggests that the market is still pricing in central bank risk and regulatory uncertainty. As developments unfold from the Bank of Japan and the Federal Reserve, it is expected that there will be an increase in volatility.
The Potential Impact of a BTC Spot ETF Approval
The potential approval of a BTC spot ETF has attracted significant attention in the industry. David Wells, CEO of Enclave Markets, a crypto exchange, states that if any of the outstanding applications are approved, there could be demand inflows ranging from hundreds of millions to single-digit billions of dollars in BTC spot ETF volume. A BTC spot ETF would make Bitcoin more accessible to a broader range of investors who are currently on the sidelines.
Stay tuned for further updates on Bitcoin’s journey in the crypto market.
The Future of Bitcoin ETFs
Several asset managers, including BlackRock, Fidelity, VanEck, and WisdomTree, have recently filed applications for spot bitcoin ETFs. This development has sparked excitement in the crypto industry, with many hoping that it will trigger a crypto rally. However, not everyone shares this optimism.
Stuart Barton, co-founder and chief investment officer at Volatility Shares, expressed his skepticism in a Distributed Ledger newsletter. According to Barton, a spot bitcoin ETF is not the “holy grail” for the industry. Instead, he believes that bitcoin future ETFs are the way forward.
Coinbase’s Investment in Circle
In a recent announcement, cryptocurrency exchange Coinbase revealed its investment in Circle, a USDC stablecoin issuer. This partnership is expected to bring significant financial benefits. Analysts at Barclays predict that the investment could generate a low-single-digit percentage upside to Coinbase’s interest revenue and a high-single-digit boost to its earnings before interest, taxes, depreciation, and amortization.
Current Market Data
According to CoinDesk data, Bitcoin experienced a 2.25% decline in the past seven days and was trading at around $26,036 on Thursday. Meanwhile, Ether had no price change during the same period and was valued at approximately $1,648.
Must-Reads
- “Worldcoin’s Eyeball-Scanning Crypto Dream Is Under Threat” – Bloomberg
- “Binance, the Biggest Player in Crypto, Is Facing Legal Risks Over Russia” – The Wall Street Journal