The price of Bitcoin has been languishing at long-term lows for many months. The coin has tried to rally several times in that period and recently broken out of a down-trending channel. The move had traders hopes high and yet still no rally has formed, no market follow-through is seen, and there is little hope the token will ever retest its all-time high. Or is there?
Bitcoin’s major hurdle is not acceptance or adoption, or even transaction speed. Bitcoin’s hurdle right now is regulation and specifically U.S. regulation. The SEC and CFTC has been wishy washy on the subject and yet to take a concrete stand. Traders in the US, and around the world, are waiting for regulators to establish a framework for adoption so the market can have what it really wants; a Bitcoin ETF.
The SEC is expected to approve a Bitcoin and/or cryptocurrency ETF the question is when. They’ve have several chances already and have only to say the word for ETF management firms to start the process. When that happens you can expect to see BTC begin moving higher again, until then expect volatility and the possibility of new lows.
The BAT Isn’t Waiting For The SEC
The BAT isn’t waiting for the SEC. The native token of the Brave browser system, powered by the ERC-20 protocol, has risen more than 70% off of its long-term low and heading higher. The move is driven by accelerating adoption of the Brave browser system by users, publishers and advertisers. The tokens are used to power an anonymous, opt-in only, ad streaming service that pays Internet users to watch ads. Be sure to keep an eye on this one, it could easily see exponential gains over the next twelve months.
US Equities Are Poised To Rebound
The US equities market is poised to rebound. The broad market S&P 500 fell hard over the past two weeks as rising interest rates for long-maturity US bonds began to rise. The yield topped 3.25%, a multi-year high, and signal an expectation of rising FOMC interest rates. The caveat that traders need to beware of is this; rising rates at this point in the economic recovery are a good thing. Rising rates indicate a normalization of economic activity and the expectation of expansion.
With earnings season at hand and the results so far better than expected the sell-off is more likely an entry point for the bulls than the start of a deep correction. The S&P 500 is finding support at a long-ter uptrend line and poised to move higher. The indicators are rolling into a strong trend-following signal that could easily lead the market to new all-time highs.