Bitcoin prices are losing 1.0% this week as the major cryptocurrency prices are resting around $25,700 per coin. This is very close to the crucial support zone at $23,000-25,000, where a mid-term price trend should be established. The coin could move to $32,000-34,000, or to $14,000-16,000.
The activity in the crypto market is rising not only in terms of volatility, but in terms of news bias. The volume of cryptocurrency derivatives trading rose by 17% to $42 billion in August, according to Deribit crypto exchange data. This is not coincide with the falling prices, but it does with the number of large transaction that were reported in the crypto market last month ($213 million in XRP and $37 million in SHIB). It could manifest that whales are preparing for something big to happen in the industry.
So, what could it be? And here we can see a series of events that might be not connected with each other at the first glance. Binance's global head of product, Mayur Kamat, has resigned amid a string of executive exits and job cuts at the cryptocurrency exchange. This is likely related to the regulatory pressure on the exchange from U.S. officials. The SEC, CFTC and U.S. Department of Justice have claims against the exchange.
JPMorgan analysts believe that the Sec will be forced to approve spot Bitcoin ETF. The decision of federal court to greenlight Grayscale’s proposal to convert its bitcoin trust into an ETF is fostering this approval by the SEC. JPMorgan believes that the Sec will not sacrifice its decision to approve futures Bitcoin-ETF in order to ban spot Bitcoin ETF’s. Former SEC Chair Jay Clayton said that this approval is “inevitable” by early 2024.
The most unusual driver for the crypto market is generated by the showbiz as the “Next Crypto Gem” reality show is hitting the stage on September 7. The veterans of the crypto industry Brian D. Evans, Layah Heilpern, and George Tung will judge the show basing on contestants’ blockchain compatibility, creativity, feasibility, and user impact.
All these events are translating a picture of the swift approval of the new asset, which is a spot Bitcoin ETF by early 2024, but without large players like Binance being involved in this market. It may become a new American-style crypto market that will be fully supervised by U.S. authorities.