The rollercoaster of cryptocurrency price predictions seems to be sloping downhill after the latest gamboling of the SEC’s rationale regarding six spot Bitcoin ETFs. After a recent court ruling that tipped the scales against the regulatory agency’s decision to reject Grayscale EFT, there was a surge of 6 percent in Bitcoin value. But, four days later, Bitcoin’s price dip proves the gospel of how the world’s top-performing cryptocurrency will always bet its bottom dollar on the volatility of the macroeconomic conditions.
What does the Bitcoin price dip mean for the latest cryptocurrency predictions?
Why Is The Bitcoin Price Falling Down?
Since its rigmarole inception, Bitcoin’s value has been an ever-swinging pendulum, always landing in the extremes of rallies and dips. The Bitcoin drop is about 50 percent down from its all-time high – crossing $69,000 in November 2021.
After a long road to recovery, cryptocurrency prices felt the pressure again when Bitcoin’s value of $20,000 was a constant lopsided battle. The Bitcoin price dip was attributable to the US Securities and Exchange Commission’s (SEC) move to sue one of the leading cryptocurrency exchanges, Binance, and its founder Changpeng Zhao over illicit mishandling of consumer funds.
After crossing a phenomenal threshold of the $31,000 mark, the Bitcoin price prediction seemed to have become victim to inflationary woes. The US Federal Reserve hiked the interest rates to tackle inflation and Bitcoin’s price dip resisted to the levels of $29,800.
Due to the inflammatory US banking crisis, cooling inflation, and weakening of the dollar index, cryptocurrency prices bounced back from their exile as the appetite for alternatives to conventional banking systems grew. So why did Bitcoin drop again?
Why Did Bitcoin Value Dip Again?
Grayscale Investments CEO Michael Sonnenshein had long proclaimed that converting its Bitcoin trust GBTC could unlock billions in a treasure chest for its holders. GBTC’s shares dramatically surged 17 percent on Tuesday before falling by 4 percent a day later.
“There shouldn’t be any further grounds on which the SEC has been relying on to continue denying these types of products from coming to the market.”
Even though the SEC’s historical aversion to approving such products is discernible, the monumental win for Bitcoin Futures ETFs (exchange-traded fund) could not bore true to Bitcoin price predictions.
A penultimate reason is that the broader implications of the recent court ruling are still unfurling. But why is the Bitcoin value crashing right now? The final straw in the Bitcoin price dip was the US SEC’s delay until October to make a decision on all of the spot Bitcoin ETFs filed by BlackRock, Invesco Galaxy, WisdomTree, Wise Origin, Valkyrie Digital Assets, VanEck, and Bitwise. After already facing a price dip, Bitcoin crashed further deep by 4.1 percent – to $26,100.
The hope to launch the first Bitcoin ETF had dampened. It can allow investors greater retail investment in the cryptocurrency space while eliminating the hassle of setting up a wallet or buying Bitcoin directly.
Owing to the Federal Reserve’s tightening policies, many cryptocurrency price predictions are inclined to believe that the Bitcoin value can plunge to a staggering $8,000 in the current bearish market.
What Is The Price Prediction for Bitcoin in 2023?
The Bitcoin value appears to be crashing in 2023 due to various factors. While the first spot Bitcoin ETF might not see the light of day until early 2024, there is a raging belief floating. Which is that, the crypto market could see an influx of investors if approval is underway, bolstering Bitcoin’s value to a supreme level.
While a spot ETF approval might sway cryptocurrency price predictions, financial gurus have fixated an event on Bitcoin’s price prediction. Experts believe that Bitcoin’s price dip is the action of pulling back a catapult. Bitcoin’s drop will transform into bullish when Bitcoin’s halving event takes place in 2024. The Bitcoin halving event, which takes place every four years, cuts down the rewards to its miners in half (3.125 BTC). This is contrived for bringing momentum in Bitcoin value as it helps in contracting supply.