The market is closely watching Exchange Traded Funds (ETFs), the highly awaited catalyst that might send Bitcoin (BTC) to record-breaking highs, as it continues its calm dance around the $29,000 level. The catalyst we’ve been waiting for may finally be here as the 30-day variance falls to new lows and volumes of trading appear to be taking a break. Due to Bitcoin’s continuous performance, there appears to be some stability, which has caused implied volatility measurements to decrease. A steady market has also caused everlasting Open Interest to trend upward. In this environment, leverage has been increasing, indicating a potential spike in volatility.
The Great Bitcoin Catalyst
CEO of ARK Investors Catherine Wood stated, “I anticipate the SEC, if it decides to authorize a bitcoin-related ETF, will likely approve a single one at once.” And given the future ETF judgments, this appears imminent. The United States’ Securities and Exchange Commission, known as the SEC, will soon make a judgment about the ETF application made by ARK 21 Shares. Previous occurrences have demonstrated the market’s enormous impact of ETF momentum, particularly during the rise that followed BlackRock’s ETF filing in June.
At this time, it is all conjecture as to whether the SEC will accept, reject, or merely delay its judgment. Market volatility will undoubtedly be impacted by ARK’s application. Current signs point to a postponement, though, as the SEC’s attention is still split between the Grayscale litigation and other matters. The SEC has a history of favoring using the full 240 days of its judgment window. The filing verdict for ARK 21 Shares is expected between August 11 and August 13, which could lead to an increase in speculation and volatility.
BTC Is Still Waiting
People are interested in other things as well, though, not just ETFs. The current stability of bitcoin, which coincides with that of the hottest month of 2020 and the impending halving, creates the ideal conditions for accumulation. However, this peace is not without risk. There is a greater likelihood of future market liquidations as leverage increases. Trading and investing involve a waiting game. BTC occasionally experiences brief spikes in volatility and market activity. Despite this, BTC continues to consolidate closely to the $29,000 level.