Bitcoin ETF hopes keep crypto above $28k

Bitcoin is still keeping its head above the $28k mark, after spiking to a 3-month high earlier this week.

The world’s largest and oldest crypto is also holding above its 200-day simple moving average (SMA) for the longest period since falling below this widely-followed technical indicator back in mid-August.

Bitcoin’s brief foray above $30k on Monday was inspired by fake news that the US Securities Exchange Commission (SEC) had approved a Bitcoin exchange-traded fund (ETF).

An approved-ETF is expected to significantly lower the bar for investors to gain access to Bitcoin, which could trigger a wave of demand and potentially send its prices soaring.

Monday’s spike, even on mere whispers, shows there is a lot of pent-up excitement amongst the crypto community about this Bitcoin ETF.

They’re raring to go, eager to react to such a major catalyst.

However, as mentioned in our late-July article,

BlackRock’s Bitcoin ETF application with the SEC may only know its final fate in Q1 2024.

Still, the CEO and founder of Galaxy Digital Holdings, Michael Novogratz, expects the SEC to approve such Bitcoin ETFs even before 2023 is over.

But that doesn’t mean Bitcoin fans have nothing to look forward to in the interim.

This week, Grayscale Investments’ is expected to take another step towards converting its Bitcoin trust (GBTC) into an ETF.

A court in Washington DC is expected to issue a mandate that would pave the way for this conversion.

This announcement or fresh info out of the courts/Grayscale/SEC may yet trigger more excitement among Bitcoin bulls, or at least more volatility for prices in the days ahead.

Where to next for Bitcoin prices?

Another surge of optimism for a Bitcoin ETF may well send Bitcoin back above the $30k mark once more.

However, disappointment may drag Bitcoin back below its 200-day SMA, setting prices up for a retest of its 50-day SMA for stronger support, as it did last week.