BITCOIN RISES AS HOPES OF ETF APPROVAL RISES
Two weeks ago, the price of Bitcoin fell to a monthly low of $5797 after the SEC ended its review of nine Exchange Traded Funds (ETFs). Since then, the BTC/USD pair has made slight gains and today, it reached a weekly high of $6877. These gains are attributed to the decision by the SEC senior management to review the decision to reject the ETFs.
The rise came as PricewaterhouseCoopers (PwC) released a new report on Bitcoin. The report found that lack of user trust and regulatory uncertainty were hindering the success of Bitcoin – and other cryptocurrencies. In the report, PwC officials surveyed 600 executives in more than 15 countries. These concerns have been around for a while. Regulators from across the globe are struggling with how to regulate cryptocurrencies and traders are worried about how the regulations will impact transactions.
Such issues have led to poor cryptocurrency adoption of late. Very few companies worldwide accept them. In addition, most people who own cryptocurrencies do so for speculation purposes.
The regulatory issues have also moved to the private sector. Early this year, Google, Facebook, and Twitter announced that they would ban blockchain ads from their platforms. Yesterday, Baidu – the Google of China – announced that it would halt all cryptocurrency-related ads and crypto chat groups. These services have been blamed for helping to manipulate crypto prices.
Crypto uncertainties have not prevented mining companies from being successful, however. The three biggest mining equipment manufacturers – Canaan, Bitmain, and Ebang – have announced plans to become public companies in Hong Kong. Bitmain, Canaan, and Ebang are expected to raise $3 billion, $1 billion, and $400 million respectively.
The BTC/USD pair is now trading at the $6820 level, which is above the 50 and 25 Exponential Moving Average (EMA) level. The price is also above key support levels as shown below. The MACD is at the highest level since Wednesday last week. The pair could continue to move higher to test the $7,000 level. The alternative scenario is where it declines to test the $6500 support.