- Bitcoin price to receive a boost as CME plans to launch Micro BTC Futures on May 3.
- Unsurprisingly, the SEC delayed its decision on the Bitcoin ETF by extending the deadline up to June 17.
- BTC shows ambiguity as it could rise to a new all-time high or suffer a steep correction.
Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.
CME’s turn to carry the BTC torch
Even though the past week saw blood in the markets, things seem to have calmed down as Bitcoin appears to have found its footing.
Chicago Mercantile Exchange (CME) announced the launch of Micro Bitcoin Futures (MBT) on May 3, which could see a spike in interest from retail investors.
According to the firm’s senior managing director, Sean Tully, the decision to launch this new financial product comes after the company netted $4.70 million in revenues from its offering of Bitcoin Futures contracts in the first quarter of 2021. Now CME expects that the MBT would appeal to a broader audience due to its relatively smaller lot sizing and fee structure.
On the other end of the spectrum, the US Securities and Exchange Commission (SEC) gave itself an extension for deciding on VanEck’s Bitcoin ETF. The accelerated institutional demand could play a vital role in whether it would be approved or not.
The order published on April 28 reads,
… pursuant to Section 19(b)(2) of the Act,6 the Commission designates June 17, 2021, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change…
While US regulators continue evaluating the approval of a Bitcoin ETF, institutions continue accumulating more Bitcoin. Nexon became the latest publicly listed firm to acquire BTC.
The Tokyo-based gaming company purchased $100 million worth of Bitcoin at an average price of $58,266, joining Telsa, MicroStrategy and others.
Bitcoin price finds itself at crossroads
Bitcoin price has dipped to $47,000 on April 25 but has swiftly regained the losses incurred and now sits at an inflection point. Indeed, it could very well kick-start another rally that takes out the current highs as Ethereum has, or it might be the start of a much steeper correction.
The weekly chart puts the flash crash in perspective and shows that the downward impulse pushed BTC price into the early March territory but failed to test the 21-week Exponential Moving Average (EMA) at $44,996. Had this level been tapped, the bullish scenario would have been acceptable.
During the previous bull runs, BTC bounced off this EMA as it continued its parabolic growth. Hence, investors could get to see Bitcoin price come to such a crucial support level this time around. But for that to happen, a decisive daily candlestick close below the 100-day Simple Moving…