What Breakthroughs Should Traders See As Bitcoin Trades Range Limits? | Taza Khabre

Source: Pexels

Bitcoin price has managed to avoid strong volatility today, trading within a relatively tight range.

The world’s largest digital currency by market value fluctuated between roughly $33,800 and $34,400 today, according to BTC/USDT Coinbase data provided by TradingView.

This came after the cryptocurrency made impressive gains the previous day, rising more than 10% in a short period of time to surpass the $35,000 level.

BTCUSDT - Coinbase Data 10.24.23

As cryptocurrency has experienced a relative lull, what’s next for bitcoin? What key developments should traders monitor?

Trader sentiment is on the rise, says analyst

Brett Sifling, investment adviser at Gerber Kawasaki Wealth & Investment Management, focused on market sentiment, saying it has been improving after a federal court made a highly visible decision involving Grayscale and the Securities and Exchange Commission ( SEC) of the US.

Yesterday, a federal appeals court ruled that the government agency will have to reconsider its decision to reject Grayscale’s proposal, which would have turned the company’s bitcoin trust into a bitcoin cash trading fund.

“It’s starting to feel like speculation and excitement is creeping back into the crypto industry after the positive news surrounding the first Bitcoin ETF,” he said.

The approaches of the half

Sifling also talked about the so-called halving, which is scheduled to take place in April.

When this event happens, the so-called mining incentive will be cut in half, reducing the supply rate of new bitcoins by 50%.

“This Bitcoin supply constraint from the halving, combined with increased demand from new Bitcoin ETF flows, paints a favorable backdrop for the future,” he stated.

Many variables could affect the price of Bitcoin

In addition to highlighting the recent grayscale court ruling and halving, Sifling identified several other developments that could affect bitcoin’s value.

“There are still many macro factors that can influence this outcome, such as interest rates, inflation and geopolitical events such as wars happening internationally,” he noted.

The Federal Reserve has raised its benchmark rates several times in recent years, putting upward pressure on broader interest rates.

This development could spell downside for bitcoin if investors decide to pursue financial instruments that offer high returns, focusing on those opportunities instead of putting their money into the world’s most valuable digital currency.

Leave a Comment