- Recently, Bitcoin Exchange Traded Fund (ETF) applications that have pushed the price of Bitcoin to around $31,000 have been a significant trigger for the bull rally.
- Currently, Bitcoin does not have enough buying pressure to sustain a rise above $31,000.
- According to QCP Capital, the likelihood of having a Bitcoin spot ETF in the United States is currently low.
Recently, the increasing frenzy of spot Bitcoin ETF applications has pushed the BTC price above $30,000, but the diminishing effect has increased expectations of a decline.
Bitcoin ETF Applications Revived Bull Sentiment
Recently, Bitcoin Exchange Traded Fund (ETF) applications that have pushed the price of Bitcoin to around $31,000 have been a significant trigger for the bull rally. However, recent fluctuations in the price of Bitcoin have raised questions about the sustainability of the upward trend.
The movement previously driven by Spot ETF applications supporting the bull rally seems to be weakening. Currently, Bitcoin does not have enough buying pressure to sustain a rise above $31,000.
The price performance of Bitcoin had made a notable impression in the past days, and the leading cryptocurrency had returned to the $30,000 threshold for the first time since mid-April.
Now, expectations are increasing for a potential minor correction. This could lead to profitable entry points for additional long positions. Michael van de Poppe, a prominent crypto analyst, said the following:
“I think $28,500 is a great point for a long position, the lower the better, but I think this is the area you want to get it before it goes to $40,000.”
From this point on, the price of Bitcoin largely depends on the approval of the spot ETF, as the U.S. Securities and Exchange Commission (SEC) aims to create an obstacle that could lower the price of BTC in the near future.
According to trading firm QCP Capital, the likelihood of having a Bitcoin spot ETF in the United States is currently low.
Despite the inevitable rise of institutional participation in the Bitcoin arena, QCP suggests that the current structure of the SEC makes the approval of spot ETFs less likely.
The situation is further complicated by the current SEC Chairman Gary Gensler. Under Gensler’s leadership, the regulatory agency has filed lawsuits against major cryptocurrency exchanges such as Binance and Coinbase.
QCP expresses a lack of confidence in the approval of the ETF in the near future considering Gensler’s leadership at the SEC.
