Bitcoin navigates choppy waters ahead of bullish April

Crypto faces mixed sentiment as Bitcoin ETFs loom on horizon

Bitcoin is navigating choppy seas, with waves of conflicting sentiment rocking the market below the critical high watermark of $60K.

Prices sank to lows of $50K early in the week on mixed headlines. Two top-tier Wall Street banks announced they were filing for Bitcoin ETFs, while Ray Dalio warned that in “a certain set of circumstances” the cryptoasset could be banned in the U.S.

Bitcoin navigates choppy waters ahead of bullish April

Elon Musk’s tweets triggered more waves of volatility. Tesla’s Technoking announced the car maker would accept Bitcoin payments on Wednesday, causing a brief bounce in price. Yet when he tweeted “Don’t defy DeFi“, the leading decentralized finance platform Ethereum remained flat.

This Week’s Highlights

  • Banks jostle for Bitcoin ETF market
  • Tesla affirms crypto commitment with Bitcoin payments

Banks jostle for Bitcoin ETF market

Both Goldman Sachs and Fidelity filed Bitcoin ETF applications with the Securities and Exchange Commission (SEC) last week, raising hopes that the long-awaited investment vehicle could finally be approved.

Widespread availability of such an ETF is expected to open the floodgates for more money to flow into the market, allowing investors to indirectly buy Bitcoin without having to set up a wallet, and add the cryptoasset to traditional retirement and tax-free savings accounts.

In total, there are now seven ETF applications waiting to be processed. Although the SEC has refused to approve any so far, the new applications from two of the largest asset managers in the world could be considered differently.

Tesla affirms crypto commitment with Bitcoin payments

Tesla added Bitcoin as a payment option last Wednesday, and cemented its commitment to cryptocurrency with two more bombshell announcements.

The carmaker will not only follow best technical practice by running its own Bitcoin node, but will buck the trend of merchants converting to dollars and “HODL” the Bitcoin it earns from car sales for the long-term.

Although some suggest Tesla is unique in this regard, traders will be watching General Motors closely after CEO Mary Barra said in an earnings call that there is “nothing that precludes” the carmaker from accepting Bitcoin assuming “strong customer demand.”

The week ahead

Following the fireworks of January, Bitcoin hasn’t delivered the same explosive gains in February and March. Yet historical price data suggests April could bring better market conditions. Bitcoin has made gains during this month in the last eight out of ten years, rising around 40% on average.

Veteran trader Peter Brandt has also suggested rising prices could be on the agenda. Speaking with Real Vision on March 26th, he compared current price action to the “midpoint pause” of 2017, claiming Bitcoin could be expected to make another big move upward in coming weeks.

Related articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.

Please Enter Your Email Address:




Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Share article

Latest articles

XM Wins Silver Award at Cyprus HR Awards 2020

We are proud to announce that on Monday, the 8th of March 2021, Cyprus HR Awards 2020 presented us with the Silver Award in...

Changes in trading conditions from April 19, 2021

Dear TeleTrade clients,Due to changes in technical settings by the relevant counter-parties, contract sizes will be changed for the below instruments effective Monday, April...

What you need to know about the Coinbase IPO

When an airplane is getting ready to take off, before it starts moving, you can hear the engines going full throttle, giving the plane...

Altcoin frenzy pushes crypto market to 2 trillion

BNB rises 50% as Litecoin and Stellar make 16% gains While Bitcoin and Ethereum are resting at the key milestones of $60K and $2k respectively,...

Weekly Stock Market Update New highs for Wall Street

Last Week's Top Five Market Winners Nasdaq Stock Market (NASDAQ) The past week showed significant gains for ORBCOMM Inc. (ORBC), Cara Therapeutics (CARA), IZEA Worldwide Inc....

Newsletter