Are the stars finally aligning for the crypto market?

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Following a crackdown on cryptocurrency exchanges in the United States that included two of the biggest players in the forex market – Binance and Coinbase, it looked like the crypto winter could become not only prolonged but deeper.

Very soon after that, with new announcements and new developments, the crypto bulls are back in the game.

The big players are coming

BlackRock and Citadel Securities are entering the crypto space. BlackRock has announced a bid for a BTC spot ETF. Together with Citadel, they launched an exchange aimed solely at institutional investors.

The timing of the crackdown and announcements regarding BlackRock and Citadel is no coincidence. It looks like the US is likely to cede the cryptocurrency market to established traditional markets. The idea of ​​having Binance US – a Chinese exchange being the largest cryptocurrency exchange in the US market was never going to float with the political establishment.

Additionally, crypto was one of the few markets that banks and other big U.S. players were late to enter.

Long story short, we have seen recently that the US is taking over its cryptocurrency market from outside players and giving it to its traditional financial champions. And this was achieved using their regulator.

Testimony from Fed Chairman Powell

Yesterday Mr. Powell talked about the regulation of cryptocurrencies. He pointed out that they consider stablecoins to be a form of currency that needs to be watched.

He also said that BTC and cryptocurrencies have “enduring power.”

It’s exciting mainly because the narrative starts to change. With players such as BlackRock and Citadel entering the crypto space, and the Fed Chairman acknowledging stablecoins as a form of money and his comments on BTC, we believe the market is finally ready for the big money to begin. to flock.

The future of crypto

Our view on these developments is that we will see more and more traditional banks and brokers in the United States enter the cryptocurrency market and offer services to their customers in a regulated manner.

The US market was stolen by regulators from foreign entities and will be given to the establishment. We think something similar is likely to happen in the UK, EU and other countries closely aligned with the US.

With BlackRock’s bid for the BTC spot ETF, we think it’s likely that they will likely be the first big traditional player to gain approval for this product. As the largest asset manager in the world, this could mean big inflows into BTC.

With the BTC halving coming next year, an event that usually coincides with all-time highs for BTC, and all the developments mentioned, we believe that provided there is no big shock event in the markets, it is likely that we could see BTC reach new all-time highs next year.

BTC technical analysis

Following all these developments, BTC made a strong upward move which started on Monday. Yesterday, the price broke above $30,000 and was within a few hundred dollars of the yearly high which stands at 31170.96. This region has been an established support/resistance which is currently acting as resistance.

Breaking above this level may mean we can see potential for a quick move towards the 40k handle.

On the other hand, if resistance holds, a move back towards 25-26k is likely.

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