Co-founders at Glassnode, a leading cryptocurrency analytics firm, have sounded the alarm on Bitcoin’s recent price volatility. The digital currency dipped below $26,000 last Friday, only to experience a rally later in the week. The cause? Federal Reserve Chairman Jerome Powell’s comments suggesting possible interest rate hikes, adding pressure to both the cryptocurrency and stock markets.
Historically, Bitcoin’s price has been influenced by changes in interest rates. Higher rates tend to divert liquidity away from assets like Bitcoin, while lower rates fuel investor optimism.
ETF Proposals’ Delay & Bitcoin’s Price Drop
Meanwhile, Michaël van de Poppe, CEO and founder of MN Trading, weighed in on the situation, attributing the recent drop in BTC’s price to the delay in ETF (Exchange-Traded Fund) proposals. Van de Poppe stated, “The price of #Bitcoin falls back to $26,000 after all ETF proposals are delayed!”
Initially, BTC’s price had surged on the back of positive news related to Grayscale’s battle with the U.S. Securities and Exchange Commission (SEC). However, this upward momentum was short-lived. The announcement of ETF proposal delays sent the price tumbling. Van de Poppe highlighted potential market manipulation or insider trading as contributing factors.
The victory for Grayscale in its SEC battle had initially raised hopes for a favorable outcome for the ETF proposals. However, the actual outcome was a delay, leading to Bitcoin’s price hovering around the $26,000 mark.
Van de Poppe outlined his trading strategy amid the uncertainty, stating, “The original idea that we had on how to trade Bitcoin didn’t change.” He noted an aggressive entry point at $25,700 and anticipated a final market sweep down to $24,800-25,300, just below the 200-week Exponential Moving Average (EMA).
As investors brace for a long weekend, Van de Poppe’s strategy includes two potential long positions: a sweep of the lows towards $24,800-25,200 and a flip of the $26,700 area.
However, Bitcoin faces a turbulent period characterized by interest rate uncertainties and the postponement of ETF proposals. The crypto market’s resilience is evident as it navigates through the twists and turns, leaving observers eagerly awaiting the next chapter in this thrilling saga.
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