As Bitcoin continues its impressive trajectory, bulls eagerly push the cryptocurrency ever higher near the significant resistance mark of 30,000 $. Currently, Bitcoin stands at a commendable price of $29,670, which represents an increase of almost 1% over the last 24 hours.
However, as enthusiasm grows, Critics sound the alarm about potential vulnerabilitiesdrawing parallels to historical manipulations of precious metals, especially amid rising hopes for Bitcoin ETFs.
To make the situation worse, recent events such as the Binance’s decision to discontinue its Visa debit card stand in stark contrast to the resilient rise of Bitcoin. Furthermore, the Federal Reserve’s upcoming rate hike proposal could potentially amplify interest in the cryptocurrency spacethus further fueling Bitcoin’s momentum.
Fed rate hike: a potential boost for cryptocurrencies
After his recent comments, the Federal Reserve Chairman Jerome Powellhas sparked discussions among investors regarding potential effects of a suspension of interest rate increases ongoing in conventional and cryptocurrency markets. For traditional investors, the Bitcoin could emerge as a more attractive store of valuegiven the potential for diminishing returns on traditional financial instruments. Furthermore, with the stability of traditional markets, institutional investors may be led to integrate cryptocurrencies as uncorrelated assets in their portfolios.
Given the decentralized finance (DeFi) industry’s reputation for yield and staking opportunities, this move could be part of a broader diversification strategy. So, if the interest rate remains stable, the yield gap between traditional products and DeFi platforms could widen.
Bitcoin jumps as ETF hopes to drive the token to $30,000 https://t.co/egH0fFksPI
— Business Insider (@BusinessInsider) October 21, 2023
As monetary policies fluctuate amid global economic uncertainties, cryptocurrencies tied to long-term Treasury rates are gaining traction for portfolio diversification, highlighting their growing importance in financial markets. With potential changes to traditional financial instruments on the horizon, Investors looking for alternative assets may find Bitcoin (BTC) increasingly attractive.
Concerns about manipulation for Bitcoin ETFs like in the metals market
Skeptics fear that Growing anticipation of a spot Bitcoin exchange-traded fund (ETF) could leave the cryptocurrency vulnerable to manipulation, echoing the scenarios observed in the gold and silver markets. There is widespread fear that a physically settled Bitcoin ETF could use futures contracts to introduce illusory supplies of BTC, potentially offsetting sharp price increases. Unlike purchasing actual Bitcoin, acquiring Bitcoin ETFs would not reduce the actual supply. This could allow ETF managers to oversee holdings beyond their tangible assets, which could influence prices.
Critics argue that an ETF could undermine Bitcoin’s long-term potential and view it as a threat to its inherent value and self-preservation. They establish parallels with precious metals sector exchange-traded funds (ETFs), which have been the subject of allegations of price manipulation. Opinions on the impact of a Bitcoin ETF are divided. Despite the above concerns, some remain optimistic, believing that the decentralized nature of Bitcoin will prevail.
Binance Visa Card Discontinued
Recently, Binance, a major cryptocurrency exchange, announced that it would cease its Visa debit card services in the European Economic Area (EEA) starting December 20, 2023. This decision will affect 1% of its global users. These Visa cards have facilitated crypto-fiat transactions in 40 European countries. Additionally, this change may affect the crypto card program for Ukrainian refugees.
Binance promised that European users’ main accounts would not be impacted. The company also has stated that transactions could still be made using the Binance Pay appalthough some traders may be less accepting of it than before.
Binance is no longer offering its Visa debit card in Europe, the latest retrenchment by the world’s largest crypto exchange https://t.co/DWDWs41kNf
— Bloomberg Crypto (@crypto) October 20, 2023
This decision was made in response to several difficulties faced by Binance, including the suspension of euro transactions and ongoing regulatory restrictions in the United States. Binance has also faced increased regulatory scrutiny and the loss of partnerships in certain regions.
Bitcoin Price Prediction
Technical analysis of Bitcoin highlights a pivot point of its price at $29,188 and an immediate resistance at $30,282with further resistance following at $31,078 and $31,820. The first immediate support is $28,195follow up other supports at $27,287 and $26,554. The RSI, an index that measures market momentum, stands at 74, indicating overbought conditions, although anything above 50 signifies bullish sentiment.
L’50-day EMAa key technical marker, also sits at $29,188highlighting a bullish trend. Finally, the appearance of a so-called “Three White Soldiers” configuration on a 4-hour chart reinforces this bullish outlooks. Although Bitcoin’s direction appears mostly bullish, high RSI suggests caution. Minor pullbacks could occur before a significant upward move. Given the unpredictable nature of cryptocurrencies, investors must remain vigilant and adapt to market movements.
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