On 1st August, in an interview with CNBC’s panel, Bart Smith, Susquehanna’s Head of digital assets nicknamed as the crypto-king discussed if Bitcoin is in purgatory or is just getting ready for another bull run. The talk was in the context of Bitcoin ETF recently getting a denial from the U.S Securities and Regulatory Commission [SEC].
Smith was asked about ETF being squashed by the SEC and why it is not that bad a news. He replied by saying that earlier, he spoke with Brian Kelly on the show about the $6,800 that the coin was trying to break out from. During that time, it was a bear market rally where there were lower highs and lower lows, as it petered out every time it touched $6,800.
This bear-run made people look forward to the announcement of an upcoming ETF with a lot of enthusiasm, which led to Bitcoin prices hitting a $7,300 right from $6,800, and rally all the way up to $8,400. Smith further said:
“The Winklevoss ETF is denied and it [Bitcoin] kind of grinds back down to 7500 here, so where are we today. …we need to see higher highs and higher lows and so it continued to break through and hold at 7500 bounce higher. I think it probably is very bullish. The technicians I talked to are concerned about 6800, that’s the level where I think the breaks through, it would be negative.”
The crypto-king mentioned the SEC commissioners denying the Winklevoss Bitcoin ETF where one of them, Hester Peirce, was a dissenter. Recently, Hester Peirce had issued a statement, dissenting from the SEC’s decision to reject the ETF. She said that the authority should not act as a gatekeeper to new innovations and technologies.
Moreover, Smith also said that the ETF still went into rejection by the majority of the four SEC commissioners due to the concerns of liquidity and market manipulation. However, this displayed a resistance in Bitcoin from hitting the lower lows. Smith believes that the coin held its ground to a decent $6,500 and will be rallying ahead from there.
Next, the panel discussed Bitcoin’s volume drying up after the prices plummeted. A panelist asked Smith if the volumes have returned, to add confidence to the speculation of the coin reaching the bottom for the year.
Here, the expert stated that the majority of the volume is generated outside the United States. Furthermore, he said that the U.S volume is what he is concerned about, as this is going to determine the decisions on ETF and the involvement of the U.S firms in the space.
Continuing to explain his point, Smith mentioned that the Bitcoin volume has been consistently at $400 million a day in the States. Earlier, it had dipped down to a $200 million worth of volume but gained back the momentum to a similar volume as before. He added:
“Four million dollars is nothing… It’s enough that a big insurance company or CalPERS or a state pension could put a little bit of money in there and I think that would be the sign that, ‘you know what… I’ve got to get in now’. Because right now I think every institution is looking on the dance floor and nobody’s dancing and no one wants to be the first person out there.”
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