Posted on

Analysts: A Bitcoin (BTC) Breakout Could Be Happening In November

Throughout summer, Bitcoin price has been swinging between $6,000 and $8,000. However, according to some price analysts, Bitcoin price may well see a breakout come November. Forbes’ Billy Bambrough opines that market experts expect the breakout as early as November this year. However, he recognizes that a section of these experts are pegging their hopes on September, with the end month favored.

The Prospects

This breakout is expected because of two primary reasons: First, SEC is deliberating on whether to approve the Bitcoin ETF application presented by SolidX/VanEck. The decision is set to happen on or before September 30, and hopes are high that the proposal might be approved especially after the decision was delayed. Also, the fact that SEC announced its decision to review 9 other ETF applications turned down recently is another strong indication that things could turn out positive for the crypto.

Secondly, the Intercontinental Exchange (ICE), which is NYSE’s parent company, is set to launch a Bitcoin ETF on 5th November. The ICE launched a crypto platform, Bakkt, back in July and has partnered with large corporations like Microsoft, Boston Consulting Group, and Starbucks. However, the ICE’s ETF will differ from others in that it will be offered via its own platform and will use Bitcoin for every transaction conducted on its network. This measure is aimed at improving price discovery.

Finnbjornsson: Bitcoin Price To Hit $10,000

Bambrough also cited another expert, Hermann Finnbjornsson, who said that the value of Bitcoin could swell up to hit $10,000 within the first week of November. Hermann is the founder and chief executive at Svandis, a crypto advisory firm. Speaking to The Street, Hermann said that Bitcoin had a more than 99% chance to succeed in a bullish run.

However, there’s a still some debate within the crypto community about whether Bitcoin really needs an ETF approval to succeed. So far, the cryptocurrency has survived and weathered storms for a whole decade since its inception back in 2009. This puts to question the impact of an ETF approval on the Bitcoin market.  Granted, there exists a possibility of the cryptocurrency being over-financialized as a result of an ETF.

In any case, the events of late September and early November will spell out the future of the coin market. If both ETFs pull through, it could mean a huge boom with a significant price upshot for the cryptocurrency.

loading…

Posted on

Bitcoin (BTC) Price Dips Below $6800 Following ETF Delay

Bitcoin (BTC)–Bitcoin suffered another valuation blow today as the bears forced the price back below $6800. While the coin was experiencing a mild price rally after falling from $8200 to under $7000, news of the U.S. Securities and Exchange Commission (SEC) delaying their decision on a Bitcoin ETF until September 30th.

Most investors and cryptocurrency enthusiasts were hopeful that the SEC would deliver a favorable ruling on the creation of a Bitcoin Exchange Traded Fund, despite last month’s denail of a Winklevoss ETF. However, today news broke that the government body had decided to further put off a ruling on investment firm VanEck’s bid for creating an ETF, sending the market back into a turmoil. Despite the failure of the Winklevoss ETF proposal last month, New York based investment management firm was the frontrunner in the creation of a SEC-approved fund. Now, that ruling seems to be caught in limbo as the regulatory agency continues to punt away the issue to a later date.

Speaking in an earlier interview with CoinDesk, VanEck director of digital asset strategy Gabor Gurbacs was candid about his firm’s chance to create the first cryptocurrency ETF,

“Unfortunately, I don’t know the answer. I do know that we have addressed market structure issues and this is a chance for regulators to bring bitcoin under existing frameworks and protect investors.”

In addition, Gurbacs affirmed his company’s intention to create a product that serves the needs of institutional investors, as opposed to the retail market that dominates the investing side of cryptocurrency,

“Today, the bitcoin markets are still 90-95 percent retail and institutions are looking for a way to get into these markets so the physical ETF we have tailored to institutions.”

While some have questioned the emphasis and need for government regulated funds, VanEck is confident that such a move will bring improvement to the industry of cryptocurrency. Wall Street and institutional investors have thus far shied away from diving into the cryptomarkets, due to the volatility and lack of exchange security, in addition to murky legislation surrounding the investment vehicle. ETFs provide more certainty to these firms, in addition to revealing a pathway for more security and best practices in relation to handling the emerging crypto asset class.

Given the severe price movement following the SEC delay, Bitcoin investors across the globe are hanging on news of ETF approval. In July, Bitmex co-founder Arthur Hayes boldly predicted that the price of BTC would reach $50,000 by year’s end in the event of an approved ETF. The anticipation has caused erratic pricing in the market, with underlying technology and adoption having little to do with value swings at present.

loading…

Posted on

Ethereum (ETH) Founder, Vitalik Buterin, Says ETF Issues Overhyped

Ethereum Founder, Vitalik Buterin has stated that there has been unnecessary emphasis on Bitcoin and Ethereum ETFs, saying although the ETFs may help pump price, campaign for mass adoption should be given much emphasis because it has long-lasting effect on cryptocurrency.

Vitalik who’s of the opinion that stores need to start accepting cryptocurrency sees hope in the perspective than in the ETFs which is causing unnecessary havoc in the cryptocurrency space.

“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.”

SEC Disapproval Of Winklevoss Brothers’ Application

On the 27th of July, cryptocurrency market witnessed a drastic downturn which must likely be a reaction to the United States Securities and Exchange Commission’ (SEC) decision to turn down Winklevoss brothers’ application for a Bitcoin exchange-traded fund (ETF).

Although, crypto market recovered, the news held the market for hours, making people think the end of crypto was signaled.

There is A big Difference

It is worthy to note that, according to Coindesk, the bitcoin ETF proposed by the Winklevoss brothers is not the same with the bitcoin ETF by investment firm VanEck and financial service company SolidX, which many people are discussing in the cryptocurrency space.

VanEck and SolidX made known that they applied to the SEC to get approval to kickstart what could be seen as the first bitcoin-based ETF. Responding to this application, SEC demanded comments on the request, interestingly, over 100 comments have been received, and SEC may respond to it any moment.

The Winklevoss bitcoin ETF was according to SEC rejected because the application is not “consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.”

Crypto Community Is Calm.

While SEC’s decision has caused uproar in the crypto community, some respected investors keep on calming those who may be scared, saying the decision by SEC is nothing but a fume that will soon go into obscurity.

loading…

Posted on

UPDATE: Bitcoin Bulls Push BTC Price Back Above $8200

Bitcoin (BTC)–Investors in cryptocurrency, particularly the original coin BTC, have had an interesting week. While the currency managed to grow nearly 35% over the past two weeks, signaling what appeared to be the end of 2018’s prolonged bear cycle, the run was put to an abrupt halt following news of the Winklevoss twins’ bid for a Bitcoin ETF being denied by the SEC.

Bitcoin prices had hovered around $8300 for most of the week, before taking a plunge back into the $7900 range on Thursday when news broke that the Securities and Exchange Commission (SEC) had denied high profile crypto figures Cameron and Tyler Winklevoss the creation of a Bitcoin Exchange Traded Fund. The Winklevoss twins, who also founded the cryptocurrency exchange Gemini, had made a second attempt with the SEC on approval of a BTC-based ETF, which would mark the first ever of its kind. While much of the market and industry news has been in a stir over the looming–as some would put it “almost guaranteed”–creation of Bitcoin ETFs, the news came as a harsh ruling by the SEC on the potential for other funds.

However, while Bitcoin prices seemed to be rebuffed by the sudden news out of the U.S. regulatory agency, bullish investors were able to renew the price run on Friday morning, bringing BTC back into the $8300 range.

The denial of the Winklevoss ETF does represent a momentary setback for cryptocurrency. However, the SEC had previously announced a move to delay the decision on five other Bitcoin ETFs until September, giving the appearance that the agency is still collecting information on Bitcoin and evolving its position towards cryptocurrency. Given the overwhelming number of institutional figures, hedge fund leaders and other financial entities clamoring over the need for a regulated Bitcoin ETF, it seems only a matter of time until the SEC allows one to go through. As Arthur Hayes, co-founder of cryptocurrency exchange BitMex, told CNBC in early July, the presence of regulated funds in addition to greater government oversight in the investment process could lead to a significant price run for BTC.

While every investor and crypto-enthusiast has been espousing “institutional money” that has yet to throw its weight behind cryptocurrency, Hayes points out that most big-money and Wall Street players are waiting for greater clarity from government authorities before taking the plunge. Given the erratic nature of most exchanges, from hacks to the mounting catalog of consumer complaints, it’s almost no surprise that an ETF would provide a more appealing route for investing in Bitcoin. The bullish return for investors this morning would indicate that sentiments are still strong on the possibility of a BTC ETF creation, despite the setback received by the Winklevoss twins, as opposed to yesterday’s headlines concerning the status of a new fund formation.

loading…