Bitcoin bulls are gone yet again. And though there were recent days when Bitcoin was actually bullish, Bitcoin is trading below $8,000. On July 25, Bitcoin was able to hit $8,480 giving a glimmer of hope to investors about the possibility of even touching $10,000. But as price retracted, it seems that Bitcoin is still a long way to go.
There are plenty of reasons why there was a recent price surge. For one, you have the possibility that institutional investors are coming on board. Also, you have the fact that there is a possibility of a Bitcoin ETF.
However, things didn’t work out well at least for the Bitcoin ETF proposal submitted by Tyler and Cameron Winklevoss of Gemini. It was rejected by the US Securities and Exchange Commission for the second time around.
As for the reason why the US SEC denied the Winklevoss crypto ETF, the agency is concerned regarding market manipulation. Does it mean that we are not going to see a crypto-related ETF any time soon? As for the silver lining in this scenario, there are other applications out there. And for this reason, experts suggest that it is virtually next to impossible that we aren’t going to see a Bitcoin ETF approved by the SEC in the near future.
Is The Industry Ripe for Institutional Investors?
One of the questions that has to be answered is when will the institutional investors enter the picture? Will they be entering once there’s regulatory clarity and the price is low?
Recently, Nasdaq has consolidated its forces by having a closed-door meeting with different cryptocurrency exchanges. The intention of this closed-door meeting is to legitimize the industry.
So far, US Securities and Exchange Commission, despite its hesitation on the Winklevoss Bitcoin ETF application, is quite open-minded when it comes to the industry. It has considered Bitcoin and Ethereum as a commodity.
Best Time to Buy?
Is Bitcoin really going bullish soon? If you will ask the likes of Tom Lee of Fundstrat, they claim that Bitcoin is going to reach $22,000 by the end of the year. However, it is important to have an objective view of what is actually happening.
If you will look at the US Commodity Futures Trading Commission report that is released ever Friday regarding Bitcoin’s active future, you will be able to see a breakdown of the short and long positions. The chart does tell a clear story at this point. It shows the buy zone where the price entered and moved back out from $6,600 to $5,796. This is quite important since institutions are primed in buying at this level. However, there are still more sellers than buyers today in the market.
Given this statistic, could this actually be the ideal price when institutional investors actually enter the picture? Are we going to see Bitcoin dip even further now that Bitcoin has dropped below $8,000?
Though no one exactly knows the future of Bitcoin, it is important to note that this information plays a crucial role especially in knowing whether or not institutional investors are going to enter the market soon.