09.01.2024 – According to CoinTelegraph, 10 January is the deadline for the U.S. Securities and Exchange Commission (SEC) to approve spot index funds for Bitcoin. If the verdict is in favour, the price could zoom away. Or the disappointment could rage if the SEC gives it the thumbs down. A sell the news is also possible.
There has been a lot going on with Bitcoin recently. Firstly, there was the small flash crash at the start of the year – triggered primarily by fake news from China, which triggered massive stop losses. A fake screenshot circulated on the web claiming that the police had carried out a raid in Fuzhou. They are said to have confiscated 38,000 Ether tokens and thousands of Bitcoin. After the local authorities denied this, the price of BTC recovered again, here is the four-hour chart.
The fake news had fallen on fertile ground because Chinese investigators had actually shut down the Multichain platform in July 2023. CEO Zhaojun He was arrested and has not been seen or heard from since. Around six months ago, assets totalling 1 billion dollars were temporarily frozen.
Target price 200,000
And now the big event. Should the SEC actually give the green light for the authorisation of spot Bitcoin ETFs, Standard Chartered predicted a price of around 200,000 dollars by the end of 2025. According to the bank’s forecast, between 437,000 and 1.3 million BTC tokens are likely to be held in index funds in the US by then. The inflow of capital will amount to between 50 and 100 billion dollars.
Cryptic warning
Interestingly, Gary Gensler, declared enemy of cryptos and head of the SEC, posted a strange message on X/Twitter yesterday in the midst of the swelling buying frenzy. Without naming any specific ETFs, he warned that some asset managers may not comply with federal laws and that cryptos “can be exceptionally risky” and “often volatile.” He continued: “Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams. (…) These investments continue to be replete w/ fraud- bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors’ money.”
So we are curious to see whether this was a warning sign of rejection. So is there gold or just tinsel? A confirmation of hopes? Or a sell-off due to disappointment? Fortunately, you can make good profits with CFDs, both long and short. We will keep you up to date on this exciting topic!
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