The price of Bitcoin has moved between $29,500 and $32,000 since late June. As investors await a potential breakout following several institutional Bitcoin ETF subscriptions, however, one analyst claims that BlackRock’s approval is still a long way off.
Chris Bendiksen, Lead Bitcoin Research at CoinShares, sees three challenges plaguing digital assets today.
BlackRock Bitcoin ETF Filing
The first challenge identified by analysts is Buyer Fatigue “There are buyers exhausted after the price spike caused by BlackRock’s Bitcoin ETF launch filing,” Bendiksen said.
BlackRock’s June 15 filing sparked the Bitcoin price above $30,000, but has stalled at that level in the past month. “However, while Blackrock has made some amendments to their filing and Coinbase has partnered with CBOE for the settlement. We still think Spot ETF approval is a long way off,” he added.
He also highlighted the US Securities and Exchange Commission repeatedly saying they wanted a surveillance agreement with a market with “significant” bitcoin volume, which analysts concluded was a hurdle for ETF approval because “we don’t know what that ‘significant’ means. But most of the bitcoin spot volume comes from exchanges outside the United States, which the SEC has little hope of overseeing,” he added.
However, the analyst said public comments by BlackRock CEO Larry Fink have given significant momentum to Bitcoin. “Larry Fink’s positive talk about Bitcoin has its merits in and of itself,” Bendiksen asserted, adding that the Bitcoin halving would attract significant media attention and “It underscores the strength of Bitcoin’s strong monetary policy.”
Actions by the Ministry of Justice Potential with Binance
Bendiksen said the second challenge in getting Bitcoin out of its current price range is US officials. “Potential DOJ action against Binance caused market stagnation,” Bendisen said.
Request to the U.S. Department of Justice The move comes after the SEC filed a lawsuit against Binance and its CEO Changpeng Zhao, alleging that Binance had listed unregistered securities. including pooling client and company funds, and Zhao “secretly” controlling Binance US.
XRP Trial
Bendiksen said the third challenge to Bitcoin’s upward trajectory is the “recent event in altcoins after the XRP rout.”
After Ripple’s partial legal victory with the SEC, Bitcoin’s market dominance dropped below 50%, which happened as altcoins increasingly wrested a share of the digital asset market.
macroeconomic trends
Traders are keeping an eye on the upcoming Federal Reserve meeting and the expected rate hike. This could be the end of the cycle, where Bitcoin is normally inversely correlated with the US Dollar Index (DXY).
“We think a weakening of the dollar over time should have a positive effect on bitcoin prices, but it may take more time for that effect to be seen in the short-term market tide,” Bendiksen said.
refer : theblock