Pushed by the prospective benefits of the Bitcoin spot ETF, BTC quickly increased to above $30,000 before experiencing three weeks of shocks and failing to surpass the previous high numerous times. We believe that the market won’t end and that Bitcoin will vary and grow until the ETF receives a formal response.
The market’s morale was improved by Ripple’s legal success, and common altcoins may also usher in more efficient options. At the same time, we have high hopes for RWA’s positive long-term impact on the cryptocurrency industry. It must be acknowledged that macro and regulatory risks could potentially resurface and significantly disrupt the market. Regarding the prospects for the market, we continue to be cautiously optimistic.
The unanchoring of USDT during the whole fall in June verified the short-term bottom of BTC, and the changing of the chips during the decline laid the groundwork for a new round of increase.
Veteran Wall Street institutions like Blackrock used Bitcoin spot ETFs, propelling the market to quickly surge. BTC rebounded to the prior high, and it is predicted to trend upward throughout the course of the upcoming month.
After Ripple won the lawsuit, XRP increased by more than 100%, the market risk appetite spiked, and mainstream altcoins will bring in more effective options.
Since June, BTC has started to see a brief decline, whilst Tether FUD started to surface again in the middle of the month, USDT has hardly been unpegged, and the USDC/USDT buying and selling pair has increased to 1.0042. Last year, USDT twice broke its anchor, one following the Luna crash and the other following the FTX rainstorm. Both of these events were short-term bottom signs.
On June sixteenth, USDT was de-anchoring. On the $25,000 critical help threshold, BTC retreated before rising. The chips changed from having thin hands to having thick palms. The chip architecture became more stable because to the change of palms on the underside. Quite limited, usually capping at $30,000.
Numerous American asset management behemoths, including Blackrock and Investco, have repeatedly submitted applications for bitcoin spot ETFs, which has supported bitcoin’s rapid growth. The creation of spot ETFs can offer traditional investors more convenient and compliant funding methods, and it is anticipated that this will add tens of thousands of dollars to the market for cryptocurrencies.
A second attempt at the bull market in the second half of 21 shows that the market increased in anticipation of the Bitcoin futures ETF, peaked, and then declined after the ETF’s approval. Therefore, the prudent cash jumped in and relaunched the Mavericks before the spot ETF was approved.
The old Wall Street institutions have applied jointly this time for the Bitcoin ETF. It is obvious that some enterprises have already received regulatory approval. By the time we get there, the SEC will decide on the ARK Bitcoin spot ETF on August 13 at the latest, which also means that we should still have a few months of hot market conditions.
It’s difficult for Bitcoin to fall sharply in this day and age since rational money is eager to buy any Bitcoin retreat. Instead, it will continue to grow aftershocks.
Although the correction of BTC on this climb is not significant, and the current situation can be advantageous to the bulls, we should also be aware that macro and regulatory risks still exist, which can result in unexpected market disruptions.
Because of this, we continue to be cautiously optimistic that the growth of Bitcoin won’t be smooth, and that the shock period may potentially last longer than expected.
Federal Reserve officials have reiterated time and time again that they will not lower interest rates this year and that there is still room for two rate hikes in the second half of the year. This has caused long-term U.S. bond interest rates to rise, which isn’t good for risky property.
At the same time, the Fed’s balance sheet discount is still in effect, and total property values have decreased below those prior to the March banking crisis. This trend cannot continue indefinitely. It might be difficult for US equities to maintain the strong growth seen in the first half of the year if interest rates are consistently high and liquidity is being pulled. If there is a severe decline, the cryptocurrency market may also suffer as a result.
After the SEC sued Binance in early June, BNB experienced a steep decline, bounced back after striking the crucial support level of $220, and then began to sway back and forth. Although BTC has rebounded from the low to nearly reach the previous high, BNB has not followed suit, ranging between $220 and $250. Binance has also employed Launchpad, Launchpool, and other techniques to boost the value of BNB.
Recent executive resignations from Binance suggest that public sentiment may not be in the company’s favour. Since BTC has reached to a comparatively high level, the market may experience significant disruption if the regulatory issue recurs.
BTC must vary laterally for a while to absorb the selling pressure since it is coping with stress levels that are near to the previous high. Underneath the assumption of possibly upbeat spot ETFs, the bulls still hold the upper hand and are waiting for an ideal opportunity to drive the market higher. The market risk appetite increased after Ripple won the lawsuit, and traditional altcoins will bring in efficient alternatives.
Long-term, RWA will add funds to the market; however, short-term development still confronts numerous obstacles. At the same time, macro and regulatory risks should continue to spook the market, and Bitcoin’s meteoric ascension might see detours. Regarding the market outlook, we continue to be cautiously optimistic. We are also bullish about Bitcoin’s upward shock.
