The value of Bitcoin (BTC) - the first digital currency in the world in terms of the highest total market capitalization - witnessed a noticeable increase, as it recently exceeded the $28,000 barrier, bringing the price of the currency to its highest levels recorded during the day at the level of $28,600 yesterday around 6 p.m. EDT, according to CoinDesk data.
However, the price of BTC declined after these upward price movements to trade at less than $28,300 at the time of preparing this report, according to the same CoinDesk website.
A number of analysts confirm that these recent upward price movements are largely due to a fake news report. The Cointelegraph Twitter account stated that the US Securities and Exchange Commission (SEC) had approved the request of the global asset management company BlackRock to establish an exchange-traded fund for Bitcoin contracts, and sector observers also indicated that there were other factors that affected the recent price movements of Bitcoin.
Scott Melker, a crypto investor, analyst, and host of The Wolf Of All Streets podcast, said: “The price of Bitcoin rose approximately 4% before CoinTelegraph published the fake news,” adding, “It is clear that the fake and reckless news report is responsible for the rise in the value of Bitcoin.” “Bitcoin currency and its subsequent decline, but it is not necessarily responsible for the price movements that preceded it,” which “is often due to knowledgeable people’s advance knowledge that this step is unfortunately coming, or it is a result of speculators constricting the positions of the price decline.”
Tim Enneking, managing director of hedge fund management firm Digital Capital Management, also commented on the situation by saying: “Although the aforementioned report caused the initial price movement, its timing coincided with the expiration of the deadline for the SEC to appeal the court’s decision issued in Earlier this year in the Grayscale case - and this timing may have been intentional... then the constriction of the deals of speculators on the decline of the price took over, causing it to escape upward, and then to decline almost immediately, as is the case with the majority of such cases. “.
Armando Aguilar, an independent crypto analyst, also commented on these recent developments, stressing the combination of many variables to raise the price of Bitcoin, and highlighting the expectations of James Seyffart, a Bloomberg Intelligence research analyst specializing in exchange-traded funds. “We believe there is a 90% chance of approval by Ark’s January 10 deadline,” he wrote in a prepared report, the deadline set for deciding on investment firm ARK Invest’s application to create a BTC exchange-traded fund. “.
Furthermore, Aguilar claimed that the high probability of approval for a Bitcoin exchange-traded fund application “along with new institutional products and investments has caused the price of Bitcoin to slowly rise.”
As for the future of the crypto sector and its assets, Andrew Rossow, a lawyer and founder of AR Media Consulting, believes that the crypto sector may benefit greatly from the SEC’s approval of the request to establish an exchange-traded fund for spot Bitcoin contracts, and he commented on this by saying: “ We have seen over the past few years the difficulty of getting a 'green light' from the committee, so a report indicating its approval of a request to create a Bitcoin Spot ETF would likely have a major impact on the entire crypto sector. “And we can get closer to seeing the widespread adoption of digital currencies.”
