The long-awaited roar of Bitcoin following the approval of Exchange Traded Funds (ETFs) by the SEC has turned into a whimper, leaving many in the crypto community scratching their heads. While anticipation for a price surge ran high, BTC currently languishes in a range-bound state, failing to breach the $43,418 resistance level.
Why the Lackluster Performance?
Hester Peirce, an SEC commissioner, sheds light on the measured response. Bitcoin's novelty compared to traditional assets necessitated extra scrutiny before offering it to a wider audience, causing the approval to take years.
Disparate Treatment and Legal Wrangles:
Adding fuel to the muted reaction is the SEC's differing treatment of Bitcoin ETPs compared to other assets. Peirce acknowledges this disparity and highlights how a court decision ultimately forced the regulator's hand.
Chairman's Vote and Market Disappointment:
Chairman Gary Gensler's deciding vote pushed through the ETF approval, but it failed to trigger the expected price surge. Instead, it became a "sell the news" event, leaving many disappointed.
Eyeing the Next Moves:
With Bitcoin hovering around $43,008, the community now focuses on key levels. Michaël van de Poppe, a renowned blockchain expert, identifies $46,000 as a potential resistance level, followed by a support test in the $37,000-$40,000 range.
Market Sentiment and Looking Forward:
The relative strength index (RSI) suggests a balanced market, hinting at consolidation. While the ETF approval was a significant step, it's clear that Bitcoin's price trajectory is influenced by various factors beyond just regulatory changes.
As the crypto landscape evolves, market participants remain vigilant for catalysts that could steer the course of Bitcoin's journey. Whether it roars or whimpers next remains to be seen.