Bitcoin prices fell on Thursday after what seemed like a promising run that shrugged off a series of negative events in the cryptocurrency world, including the recent SEC bitcoin ETF disapprovals. As of the time of writing, the bitcoin USD rate currently stands at about $6,300, whereas just over a week ago, prices had peaked at about $7,300. So, is this the right time to buy bitcoin?
Current Bitcoin Market Conditions and Changing Trends
Bitcoin’s current price swings are expected to continue for a while because of the volatile nature of the market, amplified by its small size, which subsequently makes it more susceptible to price manipulation. This is not to mention that it is an unregulated market with few institutionalized safeguards to reign in the volatility. Since July, market resistance has been observed to be around the $8,000 price range, while support has stood at approximately $6,000.
A Bitcoin ETF Will Ultimately Influence Prices
Bitcoin ETF proposals have largely been dismissed by the SEC, with the government agency openly declaring that the cryptocurrency market is still too volatile and open to manipulation to deserve one. The crypto ecosystem is also hard to regulate and lacks sufficient security safeguards for investors.
However, if an ETF approval occurs, which it inevitably will, according to many analysts, the market will be opened up to institutional investors with hundreds of millions of dollars to invest, consequently pushing up prices. Tighter regulatory controls will also be set in place to provide a safer trading environment and trigger what many believe will be a sharp bitcoin price hike that could reach the $58,000 mark within a very short period.
As such, a bitcoin ETF is viewed by many HODLers as the ultimate event that could unlock untold bitcoin riches. However, until this occurs, the market is set to remain bearish.