Early on Wednesday, Bitcoin, the most valuable cryptocurrency in the world, was trading below $27,000, with a price drop of around 0.50% to $26,220.
The total value of the cryptocurrency market was $1.05 trillion, down 0.46% from the previous day. Losses in the overall market were a result of Bitcoin and Ethereum’s subpar performance.
The SEC’s decision on the Ark 21Shares Spot Bitcoin ETF has been delayed, which may have a detrimental effect on investor trust and cause short-term price volatility, which is why Bitcoin has recently lost value.
Due to a lack of large profit opportunities and an unclear timescale for ETF clearance, Bitcoin’s low volatility has decreased trading activity and trader enthusiasm.
However, the recent milestone of 900 million transactions on the Bitcoin blockchain and the market optimism brought forth by Microstrategy’s acquisition have helped Bitcoin rise above $26,000.
Hope for Bitcoin’s performance can be found in other recent developments and a potential interest rate increase by the Fed to fight inflation.
Bitcoin Price Affected by SEC’s Delay in Making a Decision on Bitcoin ETF
The SEC has given them extra time to study these proposed ETFs by extending the decision deadlines for the ARK 21Shares Bitcoin ETF and the Global X Bitcoin Trust to January 10, 2024, and November 21, 2023, respectively.
The applications for spot Bitcoin ETFs from other corporations, including BlackRock, Fidelity, VanEck, and Invesco, are also being evaluated by the SEC.
The decision deadlines for a number of Bitcoin ETFs have been extended by regulators to October 16–19.
The delays may cause short-term uncertainty in the cryptocurrency market, which can affect investor mood and slow down mainstream acceptance. They may also cause price volatility in Bitcoin.
US lawmakers push for Bitcoin ETF approval, which could affect the price of the cryptocurrency.
Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel are among the US politicians who have banded together to write a letter to SEC Chair Gary Gensler urging him to swiftly approve a Bitcoin ETF.
They referred to a current court decision that found Grayscale’s proposed Bitcoin ETP to be equivalent to accepted Bitcoin futures ETPs.
A regulated spot The Bitcoin ETF is something that legislators are pushing for since it would increase investor protection and open up Bitcoin to more people.
They are particularly concerned about the SEC’s delays, especially in light of the interest shown by significant companies like BlackRock and Fidelity. This week’s hearing of the House Financial Services Committee provides an opportunity to discuss these issues with Gensler face-to-face.
As a result, the recent news that lawmakers are pleading with the SEC to expedite the approval of the Bitcoin ETF may benefit BTC.
Given the increased institutional interest, this step may boost investor confidence and raise the price of Bitcoin.
Bitcoin Price and Interest Rates
There are a number of variables that could affect bitcoin’s price, including the potential for interest rate increases.
Traders are in a state of limbo as they wait for the Fed chief’s speech on Thursday, which is anticipated to offer insight into potential rate hikes in the future.
Increased borrowing costs could have an effect on various economic sectors if interest rates rise.
Investors may become wary due to this anticipation and turn to Bitcoin as a safety net against possible economic instability.
Bitcoin Price Prediction
The technical landscape of the BTC/USD pair shows that there hasn’t been much movement; the technical framework broadly agrees with our earlier research.
In the close vicinity of $26,000, a psychological support level, Bitcoin finds immediate support on the four-hour chart. Resistance is still present, though, just above the $26,400 mark.
A quick look at the accompanying chart reveals an upward trend line that runs from September 11 to September 25 and was most recently confirmed on September 26.
Currently, this trend line acts as a support, especially near the $26,150 level. The $26,400 level is where the 50-day Exponential Moving Average (EMA) marks resistance.
If this is broken up by bulls, Bitcoin may be able to go closer to the $26,700 target. The next resistance levels to watch are $27,200 and $27,500, should Bitcoin convincingly clear the $26,700 threshold.
On the other hand, a bearish decline below $26,000 might drive Bitcoin’s value down to the $25,380 level.
Any further decrease would make $24,900 stand out as a crucial support area. The $26,000 level will be closely monitored in the trading plan for today.