Analyst Says Bitcoin ‘Decision Time’ Quickly Approaching, Highlights One Factor That Could Dictate BTC Direction
Analyst Benjamin Cowen is saying one US economic data could determine the trajectory of the price of Bitcoin (BTC) over the coming months.
In a new video, Cowen tells his 863,000 YouTube subscribers that Bitcoin is approaching a “decision time” as traders and investors await the non-farm payrolls (NFP) report scheduled for release on February 7th.
The NFP report discloses the number of jobs added or lost in the US, excluding those in the agricultural sector. Market participants use the data to gauge the health of the country’s economy.
According to Cowen, Bitcoin could turn bullish if the unemployment rate stays at more or less the same level as last month’s reading of 4.1%.
“If the unemployment rate comes in fine… 4.1%, 4.2% then my guess is that it’s more likely than not that Bitcoin would make another move up.”
On the likely price targets for Bitcoin, the widely followed analyst says,
“The labor market data comes in next week. It seems like Bitcoin’s done the same exact thing it did last year. The question is, can it just simply follow through and get that next leg higher? I would probably say somewhere between $120,000 to $140,000, $150,000. Somewhere kind of in that zone if it’s just simply going to repeat last year.”
Cowen also says there’s a possibility of Bitcoin reaching a cycle top in a couple of months based on historical data.
“So there’s always a chance that if you do get another rally in say February or March, that it could lead into a major market cycle top depending on how aggressive it is. Remember [during the] last cycle, the top was basically in April [of 2021].”
Bitcoin is trading at $102,491 at time of writing.
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21Shares Bets On Polkadot, Files For Spot ETF With SEC
21Shares is taking a radical step in the crypto investment sector by submitting a spot Polkadot (DOT) exchange-traded fund (ETF) application to the US Securities and Exchange Commission (SEC).
If given the green light, this ETF would enable investors to acquire direct exposure to Polkadot without the need to purchase and maintain the cryptocurrency themselves.
The 21Shares Polkadot Trust, a proposed fund, is intended to be listed on the CBOE BZX Exchange. Coinbase will be the custodian for DOT tokens.
A Step Towards Increasing The Number Of Crypto Investment Options
This ETF aims to make it easier for both large buyers and everyday people to buy Polkadot. The blockchain is known for its interoperability, allowing different networks to communicate and share data.
21Shares is trying to bridge the gap between traditional finance and the crypto world by offering an exchange-traded fund (ETF). This will make DOT a more attractive choice for investors who like controlled investments instead of owning cryptocurrencies directly.
This follows rising demand for diversified crypto-based ETFs. Although Bitcoin and Ethereum spot ETFs have garnered attention, Polkadot’s participation shows popular interest in alternative currencies. However, the success of this filing depends on how the SEC views Polkadot’s regulatory standing, a factor that could impact the outcome of the approval process.
Market Performance Presents Obstacles
Polkadot has encountered market obstacles, despite the enthusiasm that fueled the filing. The price of DOT has decreased by approximately 5% in the past year, and it has declined by more than 10% in the past month alone. DOT is currently trading at approximately $6.42, a significant decline from its previous all-time highs.
The ETF filing acknowledges that the asset can be unstable and warns buyers about possible risks. Polkadot’s value could still be uncertain, even with an ETF setup, and there’s no guarantee that the token will rise or bounce back soon.
Regulatory Risks Might Affect The Chances Of ApprovalRegarding the security status of this ETF, there are significant concerns about Polkadot’s potential legal standing in the US. Polkadot’s backer, the Web3 Foundation, has attempted to portray DOT as a digital asset rather than a security concern. The SEC’s stance on digital assets is evolving, thus Polkadot’s security status may make it challenging for 21Shares to develop an ETF.
Featured image from DALL-E, chart from TradingView
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