- A Bitcoin ETF could lead to a massive price rally for BTC
- Former SEC chairman Jay Clayton believes that the establishment of a spot Bitcoin ETF is “inevitable.”
- BTC has consolidated since hitting $32,000 in June and has even retraced all its progress since mid-June.
- BTC is not entirely stable at the moment, and a further significant drop to $20,000 cannot be ruled out.
And as it turns out, despite delays on seven applications from Blackrock and six others, former US Securities and Exchange Commission (SEC) chairman Jay Clayton believes that the establishment of a spot Bitcoin ETF is “inevitable.”
- Advertisement -
Let’s see how this might lead to a massive price rally for Bitcoin.
How Can a Bitcoin ETF Approval Trigger BTC Price to $185K?
If you don’t know what a Bitcoin ETF is, think of them like this:
Imagine that you want to invest in BTC, but you don’t want to actually buy any.
You could instead invest in a Bitcoin ETF. A Bitcoin ETF is a fund that owns a large wallet of Bitcoins and tracks the price as well.
When you buy shares in a Bitcoin ETF, you are essentially buying a small piece of the BTC that the fund owns in a safe, relatively easy, and secure way.
Why Will Bitcoin Demand Rise?
First of all, a Bitcoin ETF would create more demand for BTC in the spot market, because of the massive flood of investors now buying the cryptocurrency.
- Advertisement -
In fact, according to a recent CNBC interview with Tom Lee, the head of research at FS Insights a spot ETF might push BTC to new heights.
Lee in the interview, said that a Bitcoin ETF will consume the entire daily supply of the most precious cryptocurrency in the world, leading to an “imbalance” that will eventually push prices higher.
Because of this, demand will be far greater than supply, pushing prices up to $185,000 or more.
- Advertisement -
A Bitcoin ETF Approval Is Inevitable – Jay Clayton
In a recent interview with CNBC, former U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton discussed his views on how likely the SEC is to approve a spot bitcoin ETF.
This happened, amid the delay the SEC appears to be adding to approving Blackrock, WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie and Fidelity’s proposals.
As it turns out, the SEC has another 45 days to either approve, reject or postpone these proposals.
However, Clayton stated that he anticipates “progress on this going forward.”
The SEC can continue to push the deadlines on the applications until March 2024. But according to Clayton, “an approval is inevitable.”, because “The dichotomy between a futures product and a cash product can’t go on forever.”
Bitcoin (BTC) Price Analysis
BTC has been in consolidation since hitting $32,000 in June.
Ever since then, the flagship cryptocurrency has declined terribly and has even cancelled out all the progress it has made since mid-June.
Over the past two days, BTC has slipped below $25.8k and is now trading below a crucial support.
This is without considering the impending death cross between the cryptocurrency’s 200 and 50-day moving averages (red and purple) above.
And according to a tweet from crypto analyst, Ali, BTC is “not out of the woods yet”, and we may still need to cover some more ground to be sure the cryptocurrency is now bullish.
“Historical data shows that over the past decade, $BTC ignites a bull run each time it surpasses the average cost basis of holders with a 6-month to 3-year track record.”
According to the analyst, “that pivotal breakout level for BTC stands at $33,755”.
What does this mean?
It means that BTC is not completely safe yet, and an even stronger drop to $20,000 may not be impossible.
Overall, the key idea of this section is that while BTC evidently has a very clear and bright future ahead of it, it might be wise to carefully consider any investment decisions, at least until the cryptocurrency crosses $33,755, according to Ali.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.