Bitcoin (BTC) prices remained above $7,400, keeping the spectacular gains from the start of the week. The leading coin is entering a period of speculation, which may extend until August 10, the date when the US Securities and Exchange Commission will reveal its decision on the Exchange-Traded Fund (ETF) proposed by the CBOE.
For many, this is the most important supporting event for Bitcoin, which has been falling for months, going as low as $5,800. But traders see the leading coin return to new peaks, as enthusiasm returns:
https://twitter.com/TrueCrypto28/status/1019626059975811072
The chief source of enthusiasm comes from the behavior of gold, where prices boomed after the introduction of the ETF investment opportunity. For institutional money, buying into an ETF would mean not having to deal with technicalities and exchanges.
Gold ETFs hold the physical metal, and hence have increased demand for spot gold and boosted prices. As for Bitcoin ETFs, the same principle may be expected, which means the need to buy up BTC coins and hold them in storage.
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Yet there is also the likelihood that BTC prices grow in expectations of a positive decision, only to have the ETF turned down again. Traders are envisioning a summer rally similar to last year, when July launched a significant climb in both BTC prices and altcoins.
https://twitter.com/RamenofBinance/status/1019694697135116288
But some believe the bear market and sideways drift will continue longer, and a new bull run is not coming that soon.
In the meantime, comments on the effect of a Bitcoin ETF keep accumulating on the discussion page of the SEC, with most of the messages seeing this as a positive development. Skeptics see the ETF as a short-term demand to boost BTC prices back to a higher level and recover previous losses.
One factor that may serve to quickly boost BTC prices in case of a positive ETF decision is a new accumulation of Tether (USDT) liquidity in the background. The circulating supply of USDT has risen to 2.7 billion tokens, but the total supply waiting in the sidelines widened from 3 billion this Wednesday, to 3.5 billion in just a day. It is unknown when those additional tokens would be added to exchanges, but the high supply saw Tether once again among the top 10 of coins, with the potential to cause a significant BTC rally.
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