Bitcoin prediction today: IBTC's removal from DTCC's listing causes BTC to fall
Bitcoin prediction today: IBTC's removal from DTCC's listing causes BTC to fall
Bitcoin approached $35,000 on Tuesday on news of the SEC's imminent approval of BlackRock's spot Bitcoin ETF.
Among the key factors that pointed to the launch of a spot Bitcoin ETF in the near future were:
- Progress in collaborative efforts between ETF issuers and the SEC.
- The BlackRock ETF, designated as $IBTC, appeared on the Depository Trust & Clearing Corp
(DTCC) list.
- BlackRock has begun the ETF distribution process by actively purchasing Bitcoins in preparation for the fund's launch.
The prospect of launching a spot Bitcoin ETF has fueled positive sentiment in the market, as it will lead to increased flows into the cryptocurrency and allow a wider range of investors to buy assets without having to trade them directly.
In addition, many industry insiders see the possible introduction of ETFs as the next step towards a more robust regulatory framework for the cryptocurrency sector.
It is worth noting that many cryptocurrency market participants believe that the introduction of ETFs could be the catalyst that pushes the price of Bitcoin over $100,000.
However, the euphoria in the cryptocurrency market did not last long, as one day later, IBTC was apparently removed from the DTCC registry.
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In addition, rumors that the ARK Invest Bitcoin spot exchange-traded fund (ETF) would also be listed on the DTCC were not confirmed.
This contributed to Bitcoin's fall to around $33,500.
Bitcoin began Wednesday's trading with a firm grip above $34,000, leading to volatility in the cryptocurrency market. BTC made a number of attempts that pushed its price above $34,350 but retreated below $34,000 each time.
Currently, Bitcoin is trading at $34,008.35.
Despite the drop in BTC's price, analysts believe that the asset has begun its correction down from resistance at $35,000 before a new bull run, as the main drivers (the imminent approval of a spot bitcoin ETF and the halving) continue to support it.
However, if Bitcoin fails to rise above the $34,050 resistance zone, it could continue to fall towards the $33,400 support, a break of which would open the way to $32,800.
See also: The head of Binance UK has resigned.
