- Bitcoin, the largest cryptocurrency in terms of market value, declined to levels of $28,300. During the writing, the price slightly recovered and only rose above $28,550.
- In addition to the downward movement on Wednesday, a wild bull prediction came from Tom Lee of Fundstrat Global Advisors, who frequently makes bullish predictions.
- According to the Atlanta Fed’s GDPNow model, which is updated with the latest economic data, it is estimated that the Gross Domestic Product (GDP) of the United States will grow by 5.8% in the third quarter.
Approval of a spot Bitcoin ETF in the US could lead to a massive increase in the price of Bitcoin; there will be a rapid increase in demand for Bitcoin!
Approval of Bitcoin ETF Can Have a Significant Impact on the Market
The price of Bitcoin (BTC) continues its downward trend by falling below $29,000. Bitcoin, the largest cryptocurrency in terms of market value, declined to levels of $28,300. During the writing, the price slightly recovered and only rose above $28,550. Ethereum is down 1.7% in the last 24 hours and is trading at $1,795.
In addition to the downward movement on Wednesday, a wild bull prediction came from Tom Lee of Fundstrat Global Advisors, who frequently makes bullish predictions. Lee stated that the approval of a spot Bitcoin ETF could cause a price increase five times higher than the current levels. Lee stated the following;
“I think there will be more demand than the daily supply of Bitcoin, which could push the price to be higher than $150,000, even $180,000.”
The U.S. Securities and Exchange Commission (SEC) is currently reviewing a number of spot BTC ETF applications, including the traditional finance giant BlackRock. Last week, the institution postponed its decision on Cathie Wood’s ARK21 application.
Concerns about interest rates continue
According to the latest economic data updated with the Atlanta Fed’s GDPNow model, it is estimated that the Gross Domestic Product (GDP) of the United States will grow by 5.8% in the third quarter. This figure exceeds the already rapid estimate of 5% and will be the fastest quarterly economic growth rate compared to the post-Covid period, such as the fourth quarter of 2021, when the economy rapidly progressed.
Also on Wednesday, the minutes of the Federal Open Market Committee’s meeting in July by the U.S. Federal Reserve were published. The minutes stated that officials largely saw upward inflation risks and the need to further increase interest rates.
