Bitcoin price centers on $43K nervous as traders await ETF news

The price of Bitcoin has become higher than it was earlier. but it feels caught in limbo as there are no signs as to whether a U.S. ETF would approved. while no new exchange-traded fund (ETF) news, there is an attempt by Bitcoin to rally toward its recent highs.

Analyst hints at slow progress on ETF approval

Cointelegraph Markets Pro and TradingView data indicated that the price of bitcoin was trading above $43,000.

Because of thoughts that the first Bitcoin ETF to approved in the US would approved, observers had anticipated turbulence on the day. However, no announcements had made at the time of writing.

James Seyffart, a Bloomberg Intelligence analyst, emphasized in his most recent posts on X (previously Twitter) that this week should, at worst, just see a preliminary clearance from regulators, with a formal approval coming by January 10.

We are currently seeking 19b-4 amendment filings, which will incorporate modifications that the SEC and issuers have been debating for several weeks. Specifically, create/redeem cash. (to be honest, I anticipated these by now),” he said in a portion of his remarks.

“Still expecting potential approval orders next week.”

 Additionally, the markets declined to price in a quick decision, with Bitcoin continuing to trade mostly in the range following its recovery from a liquidity cascade earlier in the week.

Forecasts for both the upside and negative of the price’s possible reaction to the decision are available, as Cointelegraph reported.

With support around the 40.5 – 42k region and resistance at the 46 – 48.5k region, the topside is now limited, according to trading firm QCP Capital’s most recent market update, which distributed to Telegram channel users on January 5.

“Despite the leveraged washout, BTC has climbed back up to 44,000 level. While we remain wary of a ‘sell the news’ knee-jerk reaction to the downside, this resilient price action gives us more confidence in the medium-term bullish view into BTC halving towards Mar/Apr this year

Fed “pivot” debate continues in the background

 QCP went on to discuss the primary macro narrative regarding the performance of the cryptocurrency sector outside of ETFs.

Link: Risks of a repeat of the March banking crisis 40% decline in Bitcoin prices — Arthur Hayes

This takes the shape of the US Federal Reserve’s interest rate policy, and although there isn’t much agreement that this month will see a positive “pivot,” things might be different in March.

“Because of the bullish ETF narrative, cryptocurrency prices are still decoupling from TradFi markets.” The statement went on, “Despite the Fed’s dot plot projections of three cuts in 2024, rates markets are pricing in six cuts for that year.”

“Such aggressive pricing in the rates market can be unwound very quickly and turn into a macro risk-off if new data points point to a resurgence in strength in the job market or higher inflation, definitely a key macro risk to watch out for.”

 The next block reward halving event for Bitcoin is scheduled to occur soon after the March rate decision.