The Bitcoin (BTC) is showing signs of
consolidation after reaching a 20-month peak at $44,770. Currently trading at
$42,900, the cryptocurrency has formed a symmetrical triangle pattern,
indicating a potential breakout with a strong impulse. Technical analysis
suggests that the target for this impulse could be in the range of $48,000 to
$50,000 per coin, and this scenario is expected to remain intact until the end
of January.
Despite the positive technical signals, there
are indications that large investors are not rushing into the market. In fact,
there has been a record weekly capital outflow from the ProShares Bitcoin
Strategy ETF (BITO) during the last week. This withdrawal of funds could be
interpreted as a warning sign of a potential correction in the crypto market.
Jamie Dimon, CEO of JPMorgan Chase, expressed
his skepticism about cryptocurrencies, stating that he has always been opposed
to crypto assets. During a Senate hearing, when questioned by Sen. Elizabeth
Warren, Dimon suggested that if he were the government, he would "close it
down." This critical stance from traditional banking figures may indicate
a reluctance to embrace cryptocurrencies as a close rival.
As the U.S. Securities and Exchange Commission
(SEC) is expected to approve spot Bitcoin and Ethereum ETFs in early January
2024, there is ongoing debate about the settlement mechanism between
market-makers and ETF issuers. The SEC's insistence on a cash settlement
mechanism, rather than an "in-kind" settlement with cryptocurrencies,
has raised concerns. Critics argue that this demand is irrational, as it would
increase transaction costs and limit opportunities for investing in
cryptocurrencies in ETFs. The move toward cash settlements could potentially
give traditional banks more control over these investments, a development that
may disappoint some investors.