Naeem Aslam, a chief market analyst at Think Markets UK, has stated that Bitcoin needs a blessing from the US Securities and Exchange Commission (SEC) to revitalize and experience a recovery in price.
Aslam said that “Bitcoin needs some sort of a blessing and only that can revitalize the rally for the currency. I think that the SEC [Securities and Exchange Commission] seeking a public opinion about the Bitcoin ETF [exchange-traded fund] is a positive sign, the department perhaps wants to respect the public opinion and most importantly wants to see the accurate landscape.”
According to Aslam, the approval of the first Bitcoin exchange-traded fund (ETF), which would allow accredited investors and individual traders in US markets to invest in cryptocurrencies, could be a major factor to revitalize the cryptocurrency market.
ETF will be approved by the SEC if enough demand exists.
VanEck and Cboe Bitcoin ETFs are said to have the highest probability of being the first ETFs to be approved by the SEC due to decades of track record the two institutions have demonstrated in the traditional finance sector of the US.
Considering the abrupt drop in the price of Bitcoin from $6,600 to $6,250 and the sheer intensity of its short-term decline, the dominant cryptocurrency will need a strong catalyst to initiate any promising upwards rally in the weeks and months to come.
If the approval of the first Bitcoin ETF by the SEC is the catalyst that could allow BTC to recover and test higher resistance levels at $7,000, $8,000, and $9,000, then BTC will not see a positive price action until the end of 2018 because the final deadlines of VanEck and Cboe Bitcoin ETFs are in early 2019.