Recent developments have increased the excitement among investors, according to a Bloomberg ETF expert. Following the collapse of FTX, cryptocurrency investors remained unconvinced despite prices more than doubling in recent months. However, recent developments suggest these fears may be unwarranted.
Despite ETF rejections, the leading cryptocurrency has managed to stay above $38,100 in the last hour. There are reasons for this resistance. Firstly, BTC demand remained strong after the last resistance test, and despite profit-taking, new positions in futures led to an increase of $500 million, pushing the price up. The second reason is the postponement of decisions on the Franklin and Hashdex spot Bitcoin ETFs.
These decisions were postponed earlier than expected, and Bloomberg ETF Expert James Seyffart says this is not a surprise. Following the latest developments, Seyffart stated: “Wow. The SEC moved very early for Franklin. It is notable that Franklin has not yet submitted an updated S-1 form.”
Bloomberg experts predict a 90% chance that ETF approvals will come in the first ten days of January 2024. Technical readings indicate a significant rally in January. The halving is approaching, and the Fed is expected to begin lowering interest rates in the second quarter of 2024. When you put these together and look from a distance, what appears is a big green monthly candlestick.
Predictions may not always come true, but conditions seem to be pushing the market towards a bull season, much like the conditions that drove the market into a bear season at the beginning of 2022. Remember, when the Fed was about to start raising interest rates, some investors were convinced that cryptocurrency would rise. They maintained this belief even as crypto companies went bankrupt.
Investors’ hope continued until Bitcoin lost the $30,000 level (the testing of $30,000 in mid-2021 had given investors hope) until the collapse of FTX. After that, even though asset managers wanted to enter the cryptocurrency space with trillions of dollars, investors remained cautious.