Bitcoin (BTC) price surges towards $30,000 as spot ETF application approval surges and PayPal stablecoin optimism prevails

Bitcoin logo / Source: Adobe

Bitcoin (BTC) is nearing a retest of the psychologically important $30,000 mark amid a fresh wave of optimism over the likelihood of near-term spot bitcoin exchange-traded fund (ETF) approvals, as well as optimism over the broader adoption of cryptocurrencies.

The world’s first and largest digital asset by market cap is most recently up around 2.5% and is on course for its best daily performance since mid-July.

According to Bloomberg’s Eric Balchunas, influential crypto billionaire and CEO of Galaxy Digital, Mike Novogratz, said on a conference call that his contacts say the approval of BlackRock and Invesco’s spot bitcoin ETF filings is a matter of “when, not what.” whether” is expected in the next “four to six months”.

Ark Invest’s CEO also expressed optimism in her comment on the prospect of SEC approval of spot bitcoin ETFs, saying in an interview with Bloomberg on Monday that if the agency wants to approve a bitcoin ETF, “more than will approve one at a time”. “.

The approval of one or more spot bitcoin ETFs should open the door to significant institutional fund inflows into the world’s largest cryptocurrency, which could massively boost its price.

The bullish commentary on the prospect of near-term spot bitcoin ETF approvals comes after it was revealed Monday that US digital payments and fintech giant PayPal had launched its own Ethereum-pegged stablecoin called PayPal USD (PYUSD). will bring to market.

The stablecoin will always be redeemable for real US dollars at a 1:1 ratio and is fully backed by real US dollars and their liquid equivalents.

Dollar to PYUSD swaps will initially only be available through PayPal, but will soon be available through PayPal’s popular payment platform Venmo, and should provide an easy solution for crypto entry.

Considering that PayPal has well over 400 million daily active users, this is potentially a huge boost for cryptocurrency adoption.

Upward trend 2023 confirmed?

Bitcoin’s recent rally fueled by ETF and adoption bullishness is also likely to be supported by technical buying as the cryptocurrency looks set to confirm that the uptrend remains strongly intact in 2023.

BTC tested the 2023 uptrend earlier this week when it temporarily fell back to the mid-$28,000s.

Now, if it manages to clear the resistance in the form of the 50-day moving average (DMA), which is right at $30,000, it should open the door for a rally towards yearly highs in the upper $31,000 area .

Traders should be aware that major macro risks could potentially dent optimism later this week.

CPI inflation data for July will be released on Thursday.

The headline is expected to rise to 3.3% year-on-year from 3.0% in June, although this is only due to base effects, while the MoM figure is expected to remain flat at 0.2%, which by the way is roughly around 1.5% inflation is equivalent to 2.0% year-on-year (that is, if you get 0.2% MoM readings for a full year).

More importantly, core CPI is expected to decline to 4.7% yoy from 4.8% and remain at 0.2% yoy.

All in all, the data should suggest that the disinflationary trend is continuing, which should support the Fed doves’ argument that no further rate hikes are needed.

However, with core inflation still well above 2.0%, the data is unlikely to do much to spur bets on near-term rate cuts.

Bitcoin and the rest of the crypto markets have largely ignored macros lately, but any surprises, positive or negative, in this report could trigger some near-term volatility depending on how the US dollar and US bond yields react.

Things are looking good for bitcoin at the moment, with crypto trading likely trending positive in the near term.

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