Recently, Gareth Soloway, a renowned market analyst from InTheMoneyStocks.com, has identified two pivotal elements that might play a significant role in determining Bitcoin’s (BTC) price trajectory in the coming months.
Currently, as Bitcoin undergoes a stabilization phase, many are speculating about a potential surge in its value. Consequently, here are the two factors to watch:
1. The Potential Approval of a Bitcoin ETF
During his appearance on The David Lin Report, Soloway highlighted the significance of keeping an eye on the possible effects of a spot exchange-traded fund (ETF) getting the green light. Furthermore, the cryptocurrency world would view the endorsement of such an ETF as a landmark event, possibly drawing more institutional investors and broadening Bitcoin’s mainstream acceptance.
He also noted that the much-awaited ARK Invest spot ETF faced a postponement in its approval timeline. “The ARK Invest spot ETF encountered a delay. It wasn’t declined, just postponed. This caused a slight dip in Bitcoin’s price, but it wasn’t significant,” he commented.
Moreover, Soloway emphasized the importance for stakeholders to stay updated on ETF-related news, as these could cause temporary price shifts in Bitcoin. Interestingly, the market saw a positive turn when BlackRock, the globe’s premier investment management entity, sought approval for a Bitcoin spot ETF, given its commendable history with the Securities and Exchange Commission (SEC).
2. Monitoring Government Bond Yields
Additionally, Soloway recommended that Bitcoin enthusiasts pay close attention to government bond yields, especially the 10-year Treasury yield. He suggested that if this yield crosses the 3.3% mark, it might exert added strain on Treasury bonds, leading to potential sales by the U.S. government.
On this topic, he drew a connection between this potential situation and the past relationship between yields and Bitcoin’s activity. He recalled that in a previous market slump in October, yields touched 3.3%. If this figure is surpassed once more, it could result in increased bond sales by the U.S. government, which might affect Bitcoin and other financial assets.
Furthermore, Soloway also brought attention to the massive U.S. debt and the potential risks it poses to the country’s economic health. The implications of escalating yields on the overall economy might have a ripple effect on the crypto sector.
Bitcoin Halving: A Word of Caution
While the market is abuzz with the anticipation of the Bitcoin halving event leading to a surge in its value, Soloway offers a different viewpoint. He mentioned that even though many expect the halving to act as a trigger, the current macroeconomic backdrop, possibly overshadowed by an upcoming economic downturn, could play a role.
Lastly, on the topic of price trends, Soloway predicts that Bitcoin might dip to $20,000 by year’s end, only to rebound, driven primarily by its growing acceptance.