Hello, Crypto enthusiasts. Welcome once again to our market update where we unravel the intricate threads of happenings in the Bitcoin and Crypto world. Today, we’ll discuss two crucial factors influencing the market currently – the macro and micro factors. More specifically, we are delving into the ongoing and potential future scenarios of Bitcoin and Ethereum and how the crucial uptrends can play out.
Bitcoin’s Promising Uptrend and Pending ETF Applications
The Bitcoin market is unmistakably on an uptrend right now, and a cursory study of the price charts confirms the claim.
As we slice through key resistance prices, the next major price resistance to break through is the 30-31K mark. Currently, the market is eagerly navigating this terrain.
The principal reason driving this steady market climb is the flood of ETF (Exchange-Traded Fund) applications awaiting approval. These applications possess the potential to drastically escalate the coin’s price. However, in the case of a delay in their approval, we might witness an unpleasant popping of this bubble.
Based on updates, the first round of decisions will come to light around the 12th and 13th of August. It’s noteworthy that Ark is slated to launch its ETF, adjusted to mimic BlackRock’s, sometime around the 13th. BlackRock, on the other hand, is likely to hear the first decision on its ETF around the 12th of August.
If the SEC (U.S. Securities and Exchange Commission) approves all applications simultaneously, the market will likely witness an explosive growth. But, in the scenario that SEC chooses to delay these approvals, we might expect another lapse of 90 days and so forth. Unfortunately, the suspense lingers as the SEC’s decision remains under wraps, indicating the need for caution.
Given the current Bitcoin market climate, we observe that we are at a significant resistance at around the 30-31K mark.
If we fail to secure the ETF applications, the odds of penetrating into new areas appear impossible.
However, this is not a reason to despair as the appearance of the current uptrend suggests that any dip to around 25-26K would still present a higher low.
Ethereum’s Clear Uptrend and Anticipated ETF Reactions
Much like Bitcoin, Ethereum also exhibits an unmistakable uptrend.
One might wonder what could potentially cause a downward push in the markets? The answer lies in the rejection or deferment of the ETFs. Part of our strategy in observing these uptrends involves a continuous gradual climb. A higher low in this scenario would take us back down to this support level at around 1700. While this dip may not occur, a possible derailment of the ETFs could act as a catalyst.
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Global Unemployment Rates are Reshaping the Macro Cycle
Aside from the eagerly anticipated ETFs, the other focal point in the current crypto climate is the global unemployment rate.
Various data analysts assert that these figures confirm a change in the cycles. However, it’s crucial to note that anything affecting Federal interest could influence the leading unemployment figure.
According to financial expert, Raul Powell, the U.S CPI (Consumer Price Index) year-over-year rates coincide reasonably well with inflation from preceding economic cycles.
While some experts speculate a possible structural inflation akin to the ’70s in the CPI, others believe in the possibility of mitigating factors such as demographics and differently structured supply chains in the current times. Despite these varying opinions, one factor remains constant – the significant role of wages in determining unemployment.
Hence, focusing on key unemployment figures becomes essential.
When unemployment rates increase in the desired fashion, the government will likely infuse more liquidity into the markets while switching their rhetoric, favoring stakeholders.
In Conclusion
Although the ETF application decisions in August will greatly impact the trajectory of Bitcoin, Ethereum, and the crypto market as a whole, it’s crucial to note that cryptocurrencies differ significantly from equities and the stock market at large. Therefore, they will respond differently to market changes.
If ETF applications are delayed or denied, we may see a dip in market prices. This dip, however, may be an excellent opportunity for potential investors willing to buy.
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