Bitcoin Price Prediction As Nasdaq Files with SEC for BTC Index Options

by

As a seasoned researcher with a decade-long career spent navigating the complex world of financial markets and emerging technologies, I find myself intrigued by the recent developments surrounding Bitcoin. The potential introduction of Bitcoin index options on Nasdaq, coupled with increasing inflows into Bitcoin ETFs, could indeed signal a trend reversal for the world’s leading cryptocurrency.

The price of Bitcoin has returned to its initial level towards the end of last week due to heavy selling. Yet, there might be a shift in trend approaching as the major U.S. stock exchange, Nasdaq, is working on obtaining SEC approval for offering Bitcoin index options.

Bitcoin Price Market Movers: Nasdaq Seeking Nod for BTC Index Options and BTC ETF Inflows

    Bitcoin price traded at $62,175 on Tuesdays following a 2.1% decline in 24 hours. Profit-taking has continued to eat into BTC accrued gains, with CoinGecko showing a modest 2.8% increase in seven days.
    Nasdaq has filed with the SEC for a license to offer and trade Bitcoin index options. If granted, the approval could be a game changer for the largest cryptocurrency, seeing that the regulator has yet to green-light options connected to any exchange-traded funds (ETFs) currently being traded in the US. Bitcoin index options will provide a quick yet inexpensive product for investors to seek exposure to the underlying digital asset. Traders and institutional investors can hedge against their exposure to BTC price, thereby normalizing Bitcoin as a global asset class.
    Nasdaq’s proposed Bitcoin index options are expected to track the real-time performance of CME CF Bitcoin Real-Time Index, which CF Benchmarks created to monitor and track BTC futures and options contracts offered by the exchange and operated by CME Group.
    Institutional investors are back after weeks of declining liquidity in the US Bitcoin ETF market. According to SoSoValue, all 12 ETFs posted $202.51 million in net inflows on Monday, continuing last week’s $506 million inflow streak. BlackRock’s IBIT led with $24 million, followed by Franklin Templeton’s $5.52 million and WisdomTree’s BTCW’s $5.05 million. Bitcoin ETFs have consistently recorded inflows since August 15, suggesting increasing investor interest and general market sentiment.

Bitcoin Price Prediction As Nasdaq Files with SEC for BTC Index Options

BTC Price Prediction: Bitcoin Seeks Higher Support

Currently, the value of Bitcoin hovers precariously near a steep drop-off, as it has experienced a significant correction from $65,000 to its recent peak of less than $62,000. Multiple possible support zones have proved incapable of shielding Bitcoin’s price from shedding its gains, and the 50-day Exponential Moving Average (EMA) has weakened during the early US trading hours.

A significant decrease in the Relative Strength Index (RSI) down to 38 signals increased selling pressure. However, if bulls can push prices above the rising trend line within a four-hour timeframe, they might halt the correction. Yet, it’s premature to dismiss the possibility of a more prolonged drop below $60,000 at this stage.

Bitcoin Price Prediction As Nasdaq Files with SEC for BTC Index Options

In simpler terms, if Bitcoin’s 200-day Exponential Moving Average (EMA) falls around $61,421, it might offer a respite for bullish investors, giving them an opportunity to compete in the market. On the optimistic note, minor drops could be beneficial as traders can invest through Dollar Cost Averaging (DCA) to potentially increase their long-term profits. Short-term objectives to watch out for are the 20-day EMA around $63,045, a resistance level at $64,000, and last week’s highest point at $65,000.

Read More

2024-08-27 17:59