Bitcoin Slips as Traders Wait for ETF Approval. Crypto bulls still eyeing $50,000.
Bitcoin
and other cryptocurrencies slipped Friday as the wait for a regulatory decision on highly anticipated crypto funds grew, although traders remained optimistic that the digital assets’ latest rally would continue.
“Bitcoin saw a slight pullback this week after hitting the $38,000 level,” said Rachel Lin, CEO of trading platform SynFutures. “Currently, the $38,000 level acts as resistance with Bitcoin being rejected from the area twice in two weeks. On the downside, $35,000 will likely serve as the next support zone, followed by $31,500.
The great Bitcoin rally, which saw the token beat the
Dow Jones Industrial Average
And
S&P500
– came largely in hopes that regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF). Such a fund, which would hold the crypto itself, is widely expected to spark a new wave of investor interest in digital assets, which would support prices.
The problem? The Securities and Exchange Commission (SEC) continues to delay its decisions on spot Bitcoin ETFs, pushing back the deadline for its verdict on Hashdex’s application, initially expected on Friday, to January 1, 2024. A decision on Franklin Templeton
It is
The Bitcoin ETF spot application was also expected on Friday.
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Despite delays to the most anticipated crypto catalyst of the year, traders remain firmly optimistic about Bitcoin’s momentum and predict further gains ahead.
“The flow of money into the crypto ecosystem continues to remain strong, marking the seventh week of positive inflow,” Lin said. “The options market remains unchanged, with $30,000 to $50,000 calls having the most open interest for November and December. The open interest call/put ratio now stands at two to one, showing a strong bullish bias,” she added. Call options represent contracts giving traders the right to buy an asset at a specific price – so calls up to $50,000 imply that investors see Bitcoin approaching that level this month or next – while puts are bearish bets.
Beyond Bitcoin,
Ether
– the second largest cryptocurrency – fell 4% to below $1,970. Smaller tokens or altcoins were also lower, with
Cardano
down 7% and
Polygon
plunging 9%. Memecoins were more mixed, with
Dogecoin
up 3% and
Shiba Inu
losing 2%.
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Write to Jack Denton at jack.denton@barrons.com
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