The recent developments in the cryptocurrency market — the aftermath of the DOJ settling with Binance in $4.3 billion deal and the removal of CEO Changpeng Zhao — have sparked a re-evaluation of the bullish narrative surrounding the potential approval of a Bitcoin exchange-traded fund (ETF).
The Binance drama initially led to a dip in several cryptocurrency prices, with Bitcoin showing the most resilience and quickly rebounding to a new high for 2023.
Binance Coin (BNB) dropped 20%, while Bitcoin initially dropped by $2,000. However, the BTC price broke above $38,000, marking its highest level in over a year and a half. Its market cap surged to nearly $750 billion, reflecting a 6% weekly increase. It has retraced a bit since.
How High Could BTC Go Post-ETF Approval?
Some observers saw the regulatory move against Binance as an opportunity for regulators and lawmakers to focus on the approval of the first US spot Bitcoin ETF. But not everyone is convinced of an immediate parabolic reaction in BTC prices post-approval.
Bitcoin Jack, a popular trader, expressed doubt about BTC/USD reaching $42,000, stating that recent Binance and ETF news had failed to significantly alter market dynamics.
Highlighting potential downside targets, the trader pointed out that despite clear support levels, $30,000 might still come back into play. He emphasized the importance of high-timeframe supports as potential buy levels if a retracement occurs.
I said 42k
Not sure we get there anymore. Expected any rumour on a Binance vs US resolution to be more bullish than price reflects (reasons: positive for ETF, less uncertainty for investors if there is a resolution), on top of the generally bullish headlines last weeks (minus…
— //Bitcoin ack (@BTC_JackSparrow) November 21, 2023
Others are taking a more extreme stance, however. Samson Mow, CEO of Bitcoin adoption firm Jan3, not only suggested that Bitcoin could hit $1,000,000 per coin following ETF approval but also claimed that those predicting anything less are in for a “pleasant surprise.”
It has come to my attention that there are some #Bitcoiners that don’t think #Bitcoin can reach $1,000,000 in a matter of days/weeks after ETF money starts to flow in. They’re in for a pleasant surprise.
— Samson Mow (@Excellion) November 23, 2023
Billions in Institutional Inflow? Most Likely
In a recent report, Coinbase predicts that final regulatory approval for a Bitcoin ETF could be a game-changer for the wealth management sector, handling billions of dollars in institutional inflows.
The exchange sees the ETF as an opportunity to attract investors who typically rely on ETFs for unique investment strategies rather than independently buying and holding Bitcoin.
In case you’re interested in more Bitcoin price predictions, feel free to check out our recent video on the subject:
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