After a crackdown on cryptocurrency exchanges In the US, which included two of the biggest players in the exchange market: Binance and Coinbase, it seemed that the crypto winter could not only be prolonged but also deepen.
Very soon after this, with new announcements and developments, the crypto bulls are back in the game.
The big players are coming
BlackRock and Citadel Securities are entering the crypto space. BlackRock announced the application for a BTC Spot ETF. With Citadel, they launched an exchange to cater to institutional investors only.
The timing of both the crackdown and the announcements about BlackRock and the Citadel is no coincidence. It seems that the US is likely to hand over the cryptocurrency market to the established traditional markets. The idea of โโhaving Binance US, a Chinese exchange that is the largest cryptocurrency exchange in the US market, was never going to float around in the political establishment.
Furthermore, crypto was one of the few markets where banks and other big US players were latecomers.
Long story short, we recently saw the US take back its cryptocurrency market from outside players and hand it over to its traditional financial champions. And this was achieved through the use of their regulator.
Testimony of Fed Chairman Powell
yesterday mr. Powell spoke about the regulation of cryptocurrencies. He highlighted that they see stablecoins as a form of money that needs supervision.
He also said that BTC and cryptocurrencies have โstaying power.โ
This is exciting mainly because the narrative is starting to change. With players like BlackRock and Citadel entering the crypto space, and the fed president recognizing stablecoins as a form of money and his comments on BTC, our view is that the market is finally ready for the big money to start flowing.
The future of cryptocurrencies
Our view on these developments is that we will see more and more traditional banks and runners in the US they enter the cryptocurrency market and offer services to their clients on a regulated basis.
The US market was stolen by regulators from foreign entities and will be turned over to the establishment. We think we're likely to see something similar in the UK, the EU and other countries that are closely aligned with the US.
With BlackRock's application for the BTC spot ETF, we think it is likely to be the first major traditional player to win approval for that product. As the world's largest asset manager, this could mean big inflows in BTC.
With the BTC halving sometime next year, an event that typically coincides with BTC's all-time highs, and all of the aforementioned developments, we believe that as long as there is no major shock event in the markets, it is likely. that we may see BTC hit new all-time highs next year.
BTC Technical Analysis
BTC/USD Binance spot chart.
After all these developments, BTC made a strong bullish move that started on Monday. Yesterday the price broke above $30,000 and was a few hundred dollars away from the yearly high of $31170.96. This region has been an established support/resistance that is currently acting as resistance.
Breaking above this level may mean that we can see potential for a quick move towards the 40k level.
On the other hand, if the resistance holds, a return to 25-26k is likely.
