A Bitcoin (BTC) price correction down to $22,000 is becoming increasingly likely as BTC derivatives have begun to exhibit bearish tendencies.
The price chart of Bitcoin leaves little doubt that investor sentiment worsened after the much-hyped victory by Grayscale Asset Manager against the U.S. Securities and Exchange Commission (SEC) on Aug. 29 and the postponement of multiple spot BTC exchange-traded fund (ETF) requests by the SEC.
The central question remains whether the prospects of an ETF can outweigh the growing risks.
Spot Bitcoin ETF hype is fading
By Aug. 18, the entire 19% rally that occurred following BlackRock ETF initial filing had fully retracted as Bitcoin moved back to $26,000.
Next, there was a failed attempt to reclaim the $28,000 support as investors raised the odds of an ETF approval following the positive news on Grayscale Bitcoin Trust (GBTC) request.
Cryptocurrency investors’ morale deteriorated as the S&P 500 index closed at 4,515 on Sept. 1, merely 6.3% below its all-time high from January 2022. Even gold, which hasn’t been able to break above the $2,000 level since mid-May, is 6.5% away from its all-time high. Consequently, the general feeling for Bitcoin’s investors just 7 months ahead of its halving in 2024 is certainly less positive than expected.
Some analysts will pin Bitcoin’s lackluster performance on the ongoing regulatory actions against the two leading exchanges, Binance and Coinbase. Moreover, multiple sources claim that the U.S. Department of Justice (DOJ) is likely to indict Binance in a criminal probe. The claims are based on allegations of money laundering and potential violations of sanctions involving Russian entities.
Moreover, multiple sources claim that the U.S. Department of Justice (DOJ) is likely to indict Binance in a criminal probe. The claims are based on allegations of money laundering and potential violations of sanctions involving Russian entities.
North Code Capital CIO and Bitcoin supporter Pentoshi expressed the current conditions in a social network post:
I think we still will eventually get some bearish Binance news vs DoJ. That should be seen as opportunity!
But overall. We also likely get ETF’s this year or early next year and $btc heading to 401k’s
Said it before but this is a year for accumulation. Don’t lose sight of the…
— Pentoshi …