As the sun rises on a new day in the financial world, an unmissable trend is gradually gaining traction. Yet another large asset firm has jumped onto the Bitcoin bandwagon, filing for a Bitcoin ETF, spurring an upward trend in the BTC price, and signaling an exciting time for investors and traders alike.
Amidst the pulsating hum of the global economy, one question prevails – are we on the cusp of a Bitcoin boom? Stay tuned as we delve deeper into these unfolding events.
Previous Bitcoin Analysis
In last week’s analysis, the sharp rejection of Bitcoin after the Grayscale news pump further solidified the bears’ power. Adoption was increasing, but the price was lagging, showing that there might have been an explosive price move to the upside when Market Makers finally stopped suppressing the price.
This week, some positive news came in. In an interesting development, Franklin Templeton, a well-established asset management firm, has filed an application for a spot in Bitcoin ETF. This news follows the U.S. Securities and Exchange Commission’s (SEC) recent decision to delay responses to similar applications, including ones from prominent firms like BlackRock and WisdomTree. The SEC has set the next response deadline for October 16, but they retain the power to further delay the decision, if necessary.
CPI data for August 2023 also came in at +0.3% and 4.3%, showing that core inflation rose 0.3%. However, the Fed is focusing more on core inflation data since it provides a better indication of where inflation is heading over the long term.
Bitcoin Price Rises to the Occasion Despite Increasing Inflation
The price of Bitcoin on Tuesday rose sharply after hitting a 3-month low of $24,920. The market sentiment for the short-term quickly changed after that as the asset rose +7.6% steadily over the next couple of days.
Further news of billion-dollar, Bitcoin rose further and is now sitting at $26,632 – a two-week high. The Bitcoin sell-off that occurred prior to this was due to investor fears of a sell-off from FTX bankruptcy. The court allowed the now infamous crypto exchange to sell off $3.4 billion worth of crypto assets, including WBTC.
Brian Amstrong, CEO of U.S-based crypto exchange Coinbase, announced that the exchange would be adding support for the Bitcoin Lightning network. Furthermore, news of PayPal incorporating crypto on/off-ramp functionality on their platform further charged the ensuing Bitcoin rally.
Bitcoin is still in a tough spot as it still has to clear $28,142 in order to break the lower lows it has been forming on the daily timeframe. The asset is right at the 200-day EMA, a key indicator that can act as resistance in the current scenario. Bitcoin is not out of the woods yet.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make investment decisions based solely on what you read here.