Currently, the BTC/USD pair is experiencing a slight drop of around 0.50%. Its current value is at $29,400.
In the world of cryptocurrencies, Bitcoin is dealing with stronger price changes because people are looking ahead to two important events: the Bitcoin halving in 2024 and an important choice from the US Securities and Exchange Commission (SEC) about a type of investment called an ETF.
Adding to this, when information about how much things cost in the US (inflation data) comes out, it makes it even trickier to know where the cryptocurrency market is going.
In this situation, we take a closer look at what’s making Bitcoin’s current situation and what might happen next.
Bitcoin’s 2024 Halving Event
On April 26, 2024, something important is going to happen to Bitcoin – it’s called a “halving event.” This event happens about every four years. When it happens, the amount of new Bitcoin that’s made goes down to 3.125 BTC.
This is a big deal because it’s part of how Bitcoin’s money plan works. It helps control how much new Bitcoin is made, so there isn’t too much around. This makes Bitcoin more valuable over time, like how gold works.
When the amount of new Bitcoin goes down, it can make the price of Bitcoin go up. This has happened before, and it’s one of the reasons why people are excited about this event.
This event is special because it keeps the total number of Bitcoin at 21 million. This is different from regular money that can be made endlessly.
This history of this event making the Bitcoin price go up shows how important it is. It’s all about how rare Bitcoin becomes, and how much people want it. This upcoming event is expected to be a big part of Bitcoin’s story.
Bitcoin’s Price Under Pressure Before Important SEC ETF Decision
The SEC might tell us what they think about the ARK 21Shares Bitcoin ETF tomorrow, which is a day before they have to. People are really looking forward to this news in the crypto market, but it might not come right on time.
This could make the price of BTC go down because the news might come out after the market closes.
TIMELINE: I've had questions in DMs and mentions over the last few days. The next SEC deadline for #Bitcoin ETFs is @ARKInvest/@21co__'s on 8/13. That's a Sunday so we should see a decision by tomorrow. My bet is after market close tomorrow. We are fully expecting a DELAY. pic.twitter.com/meejrBZaQp
— James Seyffart (@JSeyff) August 10, 2023
Big financial companies like BlackRock, Bitwise, Van Eck, and Wisdomtree want permission from the government to have Bitcoin ETFs.
ARK 21Shares might be ahead in this race, but there are worries about things like cheating in the market, how easy it is to buy and sell, and keeping investors safe. These worries could slow down or even stop these ETFs from happening.
The next few days are really important for ARK 21Shares and the other companies. They have to deal with tough problems while trying to get the okay to have their ETFs.
US Inflation Numbers Create Doubt
In July, the US Bureau of Labor Statistics said that prices went up by 3.2%, which is a bit less than what people thought (3.3%).
People are not sure where the price of BTC will go because of how the government might act. They might be strict about money because the prices didn’t go up as much as they thought they would.
BREAKING:🇺🇸📈US CPI: YoY +3.2% (EST. +3.3%) LOWER THAN ESTIMATED #CRYPTO #BITCOIN
— Crypto Macro (@cryptomacro14) August 10, 2023
People aren’t sure how inflation affects Bitcoin’s price, as shown by Bitcoin being worth less than $30,000 after the July numbers came out.
Even though a popular way to measure inflation, called CPI, showed that the government was slowing down how much money there is, Bitcoin’s price isn’t going up like before.
Before, when the government made more money, Bitcoin’s price went really high, like in 2021 when it reached $65,000. But this time, even though inflation isn’t going crazy, Bitcoin’s price isn’t going up a lot. People who want the price to go up are waiting for something to push it past $30,000.
Bitcoin Price Prediction
Right now, Bitcoin is being bought and sold for around $29,400. It seems like Bitcoin is in the middle, not going up or down a lot. It’s having a hard time going past $29,600, as shown in the past four hours.
If things go well, and the price goes past $29,600, it might go even higher, maybe to $30,200.
Bitcoin Price Chart – Source: Tradingview
Bitcoin went up to a point called $29,200, which is part of a special way of looking at numbers called Fibonacci. When it got there, something called “doji candles” closed above it, which could mean the price might go up more.
- If it goes down from there, it could go to $29,250.
- But if it goes up and gets past $30,200, it could go even higher, maybe between $30,600 and $31,000.
Two important points are at $29,800 and $30,200. If the price goes below them, it could mean that Bitcoin’s price might go down.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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