Bitcoin Price Shows Signs of Volatility, Approaching ETF Verdict Could Trigger Market Swings
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Bitcoin price has flashed incoming volatility after briefly teasing $30k in the past 24 hours. Trading around $29.86 during the early New York session on Wednesday, Bitcoin price continued to indicate a possible breakout above the prior resistance level of around $32k. Moreover, crypto experts believe Bitcoin price could be repeating similar price action to the March and June breakout fueled by the banking crisis and ETF frenzy respectively.
Economics of the Approaching Bitcoin ETF Verdict
Bitcoin price experienced heightened volatility after several giant fund managers led by BlackRock, and Valkyrie applied for an ETF with the U.S. SEC. With the initial frenzy significantly cooled down, crypto experts believe a fresh excitement is about to kick in with the United States SEC scheduled to issue a verdict on Bitcoin ETF applied by Cathie Wood’s ARK Investment Management LLC last year.
Notably, the US SEC led by Chair Gary Gensler has until August 13 to either approve, delay, or reject Ark Invest’s Bitcoin ETF application.
“An approaching ETF verdict may disrupt the slow phase of the market of late,” Bendik Schei and Vetle Lunde of K33 Research wrote in a note, “Whether the SEC postpones, rejects or approves ARK’s filing could ignite volatility in the market.”
Short Term Scope
Meanwhile, Bitcoin price faces more volatility fueled by high-impact news on Thursday and Friday. Notably, the United States Bureau of Labor Statistics is expected to release the CPI data on Thursday and PPI data on Friday, which ostensibly has a high influence on the FOMC statements.
