Bitcoin continues to consolidate near the $34,500 level today. Meanwhile, we witnessed the return of gains to Ethereum, which touched the level of $1865 at approximately 8:00 a.m. GMT, which represents the highest levels since the 10th of last August.
It seems that calm has returned to the cryptocurrency market after the hype that prevailed in the markets earlier this week, with sentiment very high at the time in anticipation of the imminent launch of the first spot Bitcoin exchange-traded fund (ETF), after the iShares Bitcoin Trust was listed on the lists of the Depository Trust and Clearing Corporation (DTCC). It later became clear that this listing is a standard procedure before launching any ETF, and that this will not mean in any way obtaining or confirming that approval is close to being obtained from the regulatory bodies.
However, Bitcoin was able to maintain the level of $34,000 despite the gradual decline of this noise. It seems that the focus has now returned to the main issue that hinders the growth of the cryptocurrency market; The regulatory and legislative concerns.
As we had witnessed the talk of one of those familiar with the ongoing legal battle between Ripple Lab and the Securities and Exchange Commission (SEC), lawyer Bill Morgan, that the conflict in the corridors of the courts may continue for a long time and there is no prospect of resolving it at the present time and that it may tend to escalate further rather than to settle and conflict resolution.
In addition, we witnessed the Chairman of the SEC, Gary Gensler, speaking at the Securities Enforcement Forum in which he continued to criticize the cryptocurrencies and stressed that the agency should supervise this market and that investors in it should be protected since most of the digital assets are “investment contracts”.
The Chairman of the Authority also expressed his concern about this technology due to its decentralized nature. He also recalled the period that preceded the regulation of financial markets about a hundred years ago, during which cases of fraud, bankruptcy, and money laundering spread.
I believe that what is said and done by actors, responsible and those informed regarding judicial and legislative developments should receive full focus from investors, rather than hoping to launch immediate Bitcoin ETFs or the next Bitcoin halving and other things.
I also believe that the failure to settle judicial disputes and clarify the features of the legislative environment surrounding the crypto market will hinder the sustainable growth and widespread adoption of this technology.
The launch of Bitcoin spot funds may boost demand for Bitcoin, and halving will reduce the growth of its supply. Yes, this is true. However, this does not mean in any way that we will see imaginary levels as is being talked about.
Remember what happens in the stock market, where the company can buy back shares to support the price, and a substantial percentage of the outstanding shares may be acquired by asset managers to include them in ETFs, but this does not mean that the share price will rise to infinity.
Rather, the exact opposite may happen. for many reasons. The fundamentals, structure and clear regulatory environment will determine the future of this market and where it will go, absolutely nothing else, that is what I believe.
