The Bitcoin price is currently in an area that CNBC calls purgatory. This is the channel between 6,000 and 7,500 USD, from which the Bitcoin price cannot break out permanently. Although the crypto market is showing a slight upward trend in recent days, analysts are not sure, in which direction prices in the cryptocurrency market will move next.
The Tracker One Bitcoin ETN was actually a very positive message for the market. Aswe reported , the Bitcoin Exchange-Traded Note (ETN), available in Sweden since 2015, became available to US investors just a few days ago. Since an ETN is basically very similar to an ETF, hopes were high that the news would push prices up in the crypto market. However, a significant increase did not occur.
Bart Smith, who heads the Digital Assets group at the Susquehanna International Group, said that the mood in the crypto market is currently very uncertain. He believes investors are in a “show-me” mode where they need irrefutable proof that a message is bullish or bearish to trade appropriately. He said:
The market is in show-me mode. There is a lot of news where we expected it to be a catalyst, but the market has not responded.
The Tracker One Bitcoin ETN is a good example. While the ETN had a substantial daily volume of over 8 million dollars when opened to US investors, this message was largely ignored by the market. Smith said:
I would think that if this volume persists over time, the ETN could be a big deal, but the market has not moved because the market is in “show-me” mode. There has been a lot of news that we thought would be a catalyst.
Smith also noted that an ETF regulated by the US Securities and Exchange Commission would have a much larger effect on prices. Smith was also surprised by the fact that the ICE and Bakkt News were not a catalyst for higher prices. CNBC’s Brian Kelly even went so far as the news came out that he described the news as the biggest news of the year. Smith explained:
It was very surprising. I think we saw a lot of big names in the room, Novogratz and many others who said, “I do not know why that was not a big deal.”
He went on to say that ICE is a name most retailers trust, and that it provides a strong connection for market makers, reducing the time required to build the infrastructure that needs this type of product. However, the platform is still at an early stage and the first Bakkt product is expected to hit the market in November. So there is not yet “show me” to follow Smith’s argument.
Smith concluded his argument and said Bitcoin is likely to trade between $6,000 and $6,800 for the time being, and may even go further.
At the time of writing, the Bitcoin price traded at almost exactly $6,500, posting a slight decline of 0.1% in the daily chart and an increase of 6.6 over the past seven days.