Naeem Aslam, head market analyst of the Think Markets UK has made a statement that BTC requires a green light from US SEC to initiate successful price recovery.
Aslam believes that a significant contributor to the revitalization of the cryptomarket might come in the form of the SEC’s approval of the first BTC ETF, which would let high-profile financiers and individual cryptotraders in the American markets finance digital currencies.
Taking into the account the sudden price drop that Bitcoin experienced (going from 6,600 to 6,250 US dollars), as well as the intensity of its decrease in the short term, the world’s most dominant digital currency will require a major motivation to start any reassuring upside movement in the upcoming weeks and months.
If approving the first BTC exchange-traded fund truly is the key motivator for the Bitcoin’s recovery, then the digital asset will not be able to break out from its 7,800, 8,000 and 9,000 USD resistance levels until the end of this year. This is because the deadlines for approval of BTC ETFs are scheduled for the beginning of the next year.
VanEck and Cboe Bitcoin exchange-traded funds are the two applicants most expected to receive the approval from the SEC, because of the many years of track record the two applying organizations have displayed in the conventional finance sector of the USA.
Aslam pointed out that the Securities and Exchange Commission is not likely to turn down a BTC ETF, which meets the requirements set by the Commission, should the public demand be strong enough to make the ETF approval justified for an emerging asset class.
Overall, the incentive for the upcoming BTC price rally may come in the form of ETF approval or an inflow of institutional financiers in the cryptomarket. One way or another, the digital currency market is in need for a substantial catalyst to make a comeback to its former glory.