I wanted the first article I shared with you to be an evaluation article about the developments in the crypto money market that I follow closely and am interested in. I try to find my way by following the developments in the market and reading expert comments. I read different comments. I try to take a bite out of the developments. I finally make up my own mind. What I write here is by no means investment advice. Good reading. I hope you will like it.
What Impact Will The SEC's Bitcoin ETF Have?
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The Bitcoin ETF has been a topic that has occupied the cryptocurrency world for a long time. Many members of the crypto community are probably hoping that if the SEC approves the Bitcoin ETF, we can all relax together.
The SEC's approval of the Bitcoin ETF is a development that will pave the way for corporate giants to legally invest in Bitcoin. I say legally because I think giant companies have already invested in Bitcoin. However, they hide it because disclosure is a crime. Even a 6-year-old can guess that giant companies are investing in BTC.
If this confirmation happens, the SEC will be deemed to have officially recognized Bitcoin. This will probably reflect very positively on the Bitcoin price.
Finally, the expected development happened and the SEC approved a Bitcoin ETF yesterday. This is not considered a direct ETF endorsement. An indirect endorsement is actually an ETF endorsement.
The SEC approved the Volt Equite ETF application yesterday. This fund is not a fund that directly holds Bitcoin. However, thanks to this fund, investments can be made in companies that are directly or indirectly related to Bitocin. Economists claim that there will be great interest in this fund. Even this development can have a positive effect on the BTC price. In fact, the BTC price has risen above $ 55 thousand again today.
Although the approval was indirect, Volt Equite ETF made the history of the cryptocurrency market as the first Bitcoin ETF approved by the SEC.
Even after a long wait, this approval is an indication of a softening in the SEC's stance towards cryptocurrencies. Also, there is a public belief that in the not-too-distant future, the SEC may directly approve a Bitcoin ETF.
There are previous Bitcoin ETF applications to the SEC. The SEC must make its decision on these applications within 240 days of filing, regardless of the outcome. Last week, the SEC announced in a statement that it would make its decision on Bitcoin ETFs pending approval 45 days later. In this case, the SEC is expected to make a statement in November or December.
Many Countries Want to Regulate Cryptocurrency Market
The USA has been approaching cryptocurrencies more moderately recently. Stating that China will not impose the bans, US officials insist on regulating the crypto money market, especially stablecoins. Stating that the regulations are late, the officials stated that especially stablecoins should be regulated urgently and they will speed up this process.
While these were happening on the SEC front, a restriction came from Russia. Anatoly Aksakov, Chairman of the Russian Finance Committee, argued that the crypto money market should be regulated in order to prevent novice individual investors in Russia from being emotional and suffering financial losses. Aksakov emphasized that this market, in which giant companies invest, offers attractive opportunities and that it is also a very risky market and that special rules should be set.
Similar statements were made by the Central Bank of Russia last week. The Russian authorities, who seem to be coordinated, do not welcome unregistered Russian investors to trade in cryptocurrencies.
Could Bitcoin's Direction Change?
While regulatory disclosures are coming from both the USA and Russia, some expert crypto analysts in the market warn investors that the Bitcoin price has reached saturation and has the potential to decline.
Experts are quite worried about some of the emerging data. Elements such as the “red zone fund rates” and the “fear and greed index” think that the direction of Bitcoin, which exhibits an upward movement above the expectations, can change at any moment.
What Factors Can Change the Direction of Bitcoin?
The flagship Bitcoin has gained more than $10,000 in just 1 week. With this rise, as the funding rates were extremely positive, the rise limits of Bitcoin narrowed. This may lead to an increase in short positions. In addition, the fear and greed index exceeding 75% is interpreted as a sign of saturation. In addition, it is thought that the contraction in the Bollinger bands may cause excessive volatility.
When all of these data are examined together, it is possible that the Bitcoin price will decrease over the weekend.
Of course, there are experts who oppose this idea and claim that Bitcoin will continue to rise. If Bitcoin continues to rise, the first resistance level is expressed as $ 58,000, and the next level of resistance is $ 60,000.
It is not investment advice.