Despite the buzz around cryptocurrencies’ potential, Bitcoin (BTC), the world’s most valuable cryptocurrency, experienced a setback, slipping below the $37,000 threshold early Wednesday. This downturn coincides with significant industry news: Binance CEO Changpeng Zhao announced his resignation amidst allegations of involvement in money laundering activities, as reported by Iconomicom on Twitter.
This leadership shakeup at one of the largest crypto exchanges has sent ripples through the market, contributing to a 24-hour loss of 2.96 percent, bringing the global crypto market’s value to $1.38 trillion.
Over $200M in crypto futures bets liquidated as #BTC dips below $36K following Binance settlement.
— ICONOMI (@iconomicom) November 22, 2023
Amidst this turbulence, the cryptocurrency market faces a critical juncture. The earlier enthusiasm sparked by the potential approval of a Bitcoin Spot ETF has been tempered by increased regulatory scrutiny in the US.
This update delves into the complex dynamics at play, exploring the potential impact of a Spot Bitcoin ETF approval on institutional investment and the possibility of Bitcoin’s price surging to an unprecedented $140,000, as suggested by a recent CoinShares report.
Market Shaken: Binance’s Leadership Change and Legal Hurdles
The global cryptocurrency market has been experiencing a downturn, with prices flashing red, primarily due to a significant leadership change at Binance, one of the world’s largest cryptocurrency exchanges.
This shift follows allegations of money laundering against the company, which have led to a nearly 12% drop in the value of its native token, as highlighted in a recent tweet by Cryptomarkets.
6/6 The overall #cryptomarket cap took a hit, dropping by 2.90% to $1.38 trillion, while total market volume spiked by 24.84% to $69.28 billion.
The fear and greed index slipped to 67 from around 74 yesterday.https://t.co/vG4b39hoV2
— Crypto Market Trends (@Cryptomarkets_) November 22, 2023
This development, along with the ongoing crackdown on Kraken Exchange and the trial of FTX, has introduced a wave of uncertainty into an ecosystem that had been showing signs of much-needed optimism in recent weeks.
Spot Bitcoin ETF: Gateway to Institutional Investment and Price Boom?
A recent report from the head of research at CoinShares posits a compelling scenario: the approval of a spot Bitcoin exchange-traded fund (ETF) could attract approximately $14.4 billion in its first year alone.
Such an endorsement might also propel Bitcoin’s price to an estimated $141,000 by the end of 2025, as discussed in a tweet by KoreMedia2.
With an Approved BlackRock ETF, the Bitcoin Price Will Hit $141,000 https://t.co/si9svCMNTl via @CryptosR_Us #BlackRock #blackRockEtf @BlackRock @BlackRock_News
— Kore Media – ΞThChasΞr (@KoreMedia2) November 22, 2023
The researcher anticipates that about 10% of the $14.4 trillion in available U.S. assets could be invested in a spot Bitcoin ETF, with an average allocation of 1%. With BlackRock, the world’s largest asset manager, nearing approval, the likelihood of these substantial investments seems increasingly plausible.
Moreover, the report suggests that if a Bitcoin ETF is approved, it could channel approximately $31.345 billion into Bitcoin, potentially elevating its price to $265,437.
This scenario underscores the growing institutional interest in finding a more accessible entry point into the Bitcoin market. The approval of an ETF could thus have a monumental impact.
Consequently, the potential green light for a Bitcoin ETF could catapult Bitcoin’s price to $265,437, reflecting significant institutional investment and a potentially transformative effect on Bitcoin’s market value.
Bitcoin Price Prediction
Bitcoin’s current performance remains in the spotlight as it experiences a 24-hour uptick in trading activity. The 2-hour chart offers an intricate view of short-term trends, highlighting key price levels for traders.
At present, Bitcoin faces immediate resistance at $38,000 , with the next hurdle at $38,700. On the downside, support is seen at $36,700, followed by $35,700.
Bitcoin Chart – Source: Tradingview
The Relative Strength Index (RSI) is closely watched; its position relative to 50 will determine sentiment. The 50-Day Exponential Moving Average (EMA) acts as a trend gauge, with a value above it suggesting bullishness.
In summary, Bitcoin’s overall trend hinges on key metrics, but the technical outlook leans toward cautious optimism. Testing immediate resistance levels in the near term is anticipated, contingent on evolving market conditions and actual metric values.
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The post Bitcoin Price Prediction as New CoinShares Report Says BTC Could Hit $140,000 If This One Thing Happens – Here’s What You Need to Know appeared first on Cryptonews.