Major cryptocurrencies experienced a surge on Wednesday evening as the optimism towards a potential spot Bitcoin ETF resurfaced.
What Happened: Crypto markets were initially shaken on Monday with the leak of a potential massive settlement of U.S. criminal charges against Binance, the world’s largest crypto exchange.
Confirmation on Tuesday of the $4.3 billion fine, along with a guilty plea by its founder and CEO Changpeng “CZ” Zhao – who also agreed to step away from the company – intensified the market turbulence.
Stepping away from the headlines, some observers and analysts have pointed out that the Binance settlement might pave the way for the Securities and Exchange Commission (SEC) to potentially approve a spot bitcoin ETF. The recent developments around Binance and its CEO CZ might have alleviated the agency’s concerns about potential manipulation of bitcoin prices occurring overseas.
Binance uncertainty out of the way, its activities will now be monitored by an independent compliance monitor.
=> Much higher ETF approval odds
Waiting for the market to agree with me that this is actually bullish. https://t.co/OzReCqeOkP
— Alex Krüger (@krugermacro) November 22, 2023
“With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow,” wrote crypto services provider Matrixport in a note seen by CoinDesk.
The global crypto market cap currently stands at $1.38 trillion, reflecting a decrease of 2.78%in the past 24 hours.
Stocks rose Wednesday as yields briefly hit their lowest point in two months, expanding the November market rally through the Thanksgiving holiday. The S&P 500 climbed 0.41% to reach 4,556.62, while the Nasdaq Composite advanced by 0.46% to reach 14,265.86.
During the latest Federal Reserve meeting, it was suggested that monetary policy would maintain its restrictive stance, giving no indication of an interest rate cut in the near future.
To celebrate Thanksgiving, the New York Stock Exchange will remain closed on Thursday and will have an early closure on Friday.
Analyst Notes: Cryptocurrency analyst Michael Van de Poppe suggests that the current phase of the cycle is an opportunity to buy the dips. According to him, altcoins are just beginning their bull cycle, and there is potential for significantly higher returns than what we are witnessing at present. “It’s simply just the start.”
Pseudonymous analyst Credible Crypto has shared an interesting suggestion that Bitcoin is currently within a significant re-accumulation zone, spanning the price levels of $38,000 to $34,800.
According to Credible Crypto, the steep decline in Bitcoin’s value brought it down to the lower end of this range, which he refers to as the “demand zone.” Should Bitcoin manage to hold steady within this demand zone, the analyst predicts a potential surge in the flagship cryptocurrency, with a target price of $40,000.
“We worked with this same range in one of my recent video updates where I was calling for a move to the range lows from the highs at $38,000. That move down ended with the wick at $35,500 which is in the blue circle below.”
Would love to make a video to explain this but still not home so bare with me as I walk you through this:
To emphasize why the levels I talked about in the quoted tweet are important I’ve cleaned up the chart a bit.
You’ll recall we worked with this same range in one of my… https://t.co/HpnGc1vZUd pic.twitter.com/GbT91yfAvQ
— CrediBULL Crypto (@CredibleCrypto) November 22, 2023
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