Although the wave of major asset managers and other institutions filing for a spot Bitcoin (BTC) exchange-traded fund (ETF) has sparked a surge of renewed optimism in the cryptocurrency industry, not everyone is certain that the bulls will retain dominance, particularly at the forefront of other impactful developments.
Specifically, Bitcoin is facing its first recession and a potential equity bear market in the United States, as it trails the recent Nasdaq 100 Stock Index gains and under the effect of federal funds futures in one year (FF13) that are “showing little potential for additional liquidity fuel,” Bloomberg’s commodities specialist Mike McGlone said on June 23.
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“Bitcoin’s key pivot point has been around $30,000 since 2021 when most risk assets appreciated on the back of the biggest money-supply surge in history. That the liquidity rug-pull is still happening, with most central banks continuing to tighten in June, could be a headwind, even as risk assets have bounced on hopes for a mild US recession and easing by the Fed.”
According to McGlone, physical Bitcoin ETFs are a matter of time, and the application by BlackRock (NYSE: BLK) could have sped this process up, but the actual launch of the first one may not happen before 2024, “and Bloomberg Economics’ expects the US to tilt toward recession in coming months.”
Bitcoin price analysis
As things stand, the maiden cryptocurrency is currently changing hands at the price of $30,158, recording a slight decline of 0.22% on the day but still handing onto the gains of 18.08% across the last week and 12.91% on its monthly chart, as per the most recent price data retrieved by Finbold on June 23.
Interestingly, the flagship decentralized finance (DeFi) asset has also managed to grow by as much as 75% since January 2023 when renowned television personality and host of the popular CNBC show ‘Mad Money,’ Jim Cramer, told investors to “get out of crypto,” as Finbold reported earlier on June 23.
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