Volatility persists in crypto market, Bitcoin trades above $28,200

Crypto market overview: Despite positive sentiment in the market, Bitcoin has lost around 1.25 per cent in the last 24 hours. ETH also faced an almost equal decline in prices and currently trading at $1,550.04. 

Amid this, the Crypto Fear and Greed Index has gained two points to climb back above 50. 

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Shubham Hudda, Senior Manager, CoinSwitch Markets Desk, said that the actual Bitcoin ETF approval can trigger a bull run. Hudda said, “Bitcoin has been holding the fort above $28,000 even as it has registered gains due to fake news of ETF acceptance followed by a price correction. Even though nearly $100 million was liquidated within hours, investors seem to be noticing the steadiness in BTC price after its correction. However, reports suggest that the actual BTC ETF approval could boost the crypto market potentially bumping up the global crypto M.Cap by $1 trillion.”

Talking about the Bitcoin price movement in the last 24 hours, the CoinDCX Research Team said, “In the past 24 hours, BTC's price briefly climbed to $29,000 but quickly retraced below $28,500. Currently, it's trading within the range of $28,100 to $28,500. As long as BTC holds above $28,000, it's considered a positive sign for the overall market.” 

“On the other hand, ETH has lost its recent gains and is once again hovering near the major support level of $1,530 to $1,550. Significantly, Tesla's Q3 2023 results, which were released on October 18, it was revealed that as of September 30, Tesla still held $184 million worth of digital assets,” added CoinDCX.  

Industry hopes for real regulatory approval for Bitcoin ETF

Few days back when CoinTelegraph mistakenly tweeted about the SEC’s approval for Bitcoin ETF, the crypto market recorded a substantial surge within hours. This signifies the importance of this regulatory decision which is expected to be settled by the first few months of the next year. Addressing the same, Rajagopal Menon, Vice President, WazirX, said, “Bitcoin's current value stands at $28,256, marking a 0.75 per cent decline in the last 24 hours. Attention is centred on the Bitcoin ETF competition, which provides a regulated avenue to manage Bitcoin's price volatility.”

“Although Bitcoin briefly surged to $30,000 due to inaccurate SEC approval reports on October 16, it instils hope for real approval. The Court of Appeals supporting Grayscale against the SEC highlights growing interest from traditional financial giants like BlackRock in the crypto market,” Menon added.

Geopolitical risks can incite market volatality

Talking about the macro factors affecting the Bitcoin price, Sudeep Saxena, Co-Founder, Coin Gabbar, said, “Bitcoin's price is showing significant volatility recently. Last week, the 10-year US Treasury yield hit 4.88 per cent for the first time since 2007, and the 30-year yield reached 5.05 per cent, a 16-year high, influenced by factors like geopolitical risks.”

Edul Patel, CEO, Mudrex, said, “Bitcoin has sustained its trading position above the $28,200 mark in the last 24 hours. This price trend coincides with asset manager Fidelity's recent filing of an amendment for its proposed spot Bitcoin ETF with the US SEC.”

“In this amendment, Fidelity outlines its plans to secure customers' Bitcoin in custody accounts and disclose potential risks. Both ARK Invest and Invesco adjusted their applications similarly last week. This has fueled optimism among market participants, who interpret them as possible indications of ongoing discussions between the US SEC and the spot ETF applicants,” added Patel.  

Shivam Thakral, CEO, BuyUcoin, said, “ The Blockchain analytics firm CryptoQuant predicted that $155 billion will enter the crypto market if Bitcoin ETFs are approved. Bitcoin remained above the $28,000 mark while Ether was hovering above the $1500 mark at the time of writing. The crypto market is poised for healthy growth but uncertain macroeconomic factors may restrict its momentum.”