Bitcoin price holds steady at $28,300, even as slight declines are observed in the S&P 500 and Nasdaq, and interest rates continue to rise in the aftermath of the global financial crisis. The broader Market Index (CMI) is experiencing a modest downturn, with cryptocurrencies like Solana’s (SOL), Polygon’s (MATIC), and Litecoin (LTC) witnessing 1% drops.
Interest rates are affecting stock market indices, with the U.S. 30-year Treasury bond yield increasing by nine basis points to 5.02%. This marks the first close above 5% since 2007. Additionally, the 10-year Treasury note yield has risen to 4.905%, the highest level since the summer of 2007.
In the meantime, a tweet falsely claimed that the SEC had given the green light to BlackRock’s spot bitcoin ETF application. However, it is widely believed that approval for one or more of these vehicles is just around the corner. Galaxy Digital CEO Mike Novogratz, whose company has joined forces with Invesco for a spot bitcoin ETF application, is of the opinion that approval will be granted in 2023.
ARK Invest CEO Cathie Wood, whose firm also has a spot ETF application, pointed out that the SEC is now making inquiries about a spot product. This is seen as a positive shift in the agency’s behavior. Nevertheless, SEC Chair Gary Gensler remains tight-lipped about his stance on the issue.
One of the questions that arise is whether the expected spot ETF approval has already been factored into the current bitcoin price. Although the cryptocurrency has almost doubled in value this year, it is still approximately 60% below its all-time high from over two years ago.
According to blockchain analytics company CryptoQuant, it is unlikely that all the potential inflow of $155 million through spot ETFs is already reflected in the bitcoin price. This could potentially indicate a significant increase in its value.
Impact of Interest Rates on Bitcoin Price
The ongoing rise in interest rates has a direct impact on various market indices, including the bitcoin price. As the U.S. Treasury bond yields continue to climb, investors may become more cautious about investing in riskier assets like cryptocurrencies. However, the current stability of the bitcoin price demonstrates that the cryptocurrency market is resilient to these fluctuations.
Spot Bitcoin ETF Approval: A Potential Game Changer
The approval of a spot bitcoin ETF could be a game changer for the cryptocurrency market, as it would provide a more accessible and regulated investment vehicle for institutional and retail investors. This, in turn, could lead to an increase in demand for bitcoin and potentially drive its price higher.
Is the Bitcoin Price Ready for a Breakout?
While the bitcoin price has remained relatively stable despite market fluctuations, there is potential for a breakout if the spot ETF approval comes to fruition. With the SEC’s recent inquiries and the anticipation of approval in the near future, investors are keeping a close eye on the market for any significant developments that could impact the bitcoin price.
In conclusion, the bitcoin price has shown resilience in the face of rising interest rates and market fluctuations. With the possibility of a spot bitcoin ETF approval on the horizon, the cryptocurrency market could experience a significant shift in the near future. As investors eagerly await the SEC’s decision, the bitcoin price remains a focal point of interest and speculation.
