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Feeling Bullish Yet?
This week's spotlight: Reuters
Welcome to the latest edition of Bitcoin Perception.
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EOW closing Bitcoin price: $30,004
Date range: October 16 - October 22, 2023
Bitcoin Perception Index (BPI): 40/100 - fearful, but getting used to it
Main Topics: Legal Challenges, Geopolitical Factors, Institutional Involvement
This week's spotlight: Reuters
Weekly Snapshot
Main Topics Of The Week
Legal Challenges
Legal challenges and regulatory actions against cryptocurrency firms have been a recurring theme in the news lately, signaling an era of increased scrutiny and governance in the space.
The key question here is how these legal challenges will shape the future regulatory landscape since such legal actions can lead to increased calls for regulatory reforms, which could either stifle innovation or pave the way for more mainstream acceptance of Bitcoin.
Further reading: NY Attorney General Sues Crypto Firms, New York Lawsuit Against Crypto Firms
Geopolitical Factors
In the current geopolitical landscape, Bitcoin is increasingly being viewed as a financial instrument that can either benefit from or be adversely affected by global events.
These factors are not merely peripheral issues but central to understanding Bitcoin's role on the global stage. They can influence regulatory decisions, investor sentiment, and ultimately, Bitcoin's price action.
Further reading: US Treasury Imposes Sanctions Against Hamas, US Invokes Patriot Act to Target Crypto
Institutional Involvement
Institutional involvement in the Bitcoin market is growing, often seen as a stamp of legitimacy. The entry of players like BlackRock and Galaxy Investment Partners could either stabilize or highly volatile the market, depending on their strategies. This also has a significant impact on retail investor sentiment.
Further reading: BlackRock and JPMorgan Laying the Groundwork, Grayscale New Application for Bitcoin ETF
This Week's Spotlight: Reuters
Bitcoin recently surged past the $30,000 mark for the first time since July, marking a significant milestone in its price action. This price movement is particularly noteworthy given the absence of a clear news catalyst, highlighting Bitcoin's capacity to diverge from broader market trends.
The financial markets at large are currently experiencing a period of volatility, influenced by factors such as geopolitical tensions and rising U.S. 10-year yields.
Against this backdrop, the market is keenly awaiting a decision from the U.S. Securities and Exchange Commission (SEC) on spot Bitcoin ETF applications.
The most awaited one is the one from BlackRock which has garnered lots of attention, carrying on the “institutions are coming” meme from 2021 well into 2024, cementing the growing role of institutional involvement in Bitcoin's market dynamics.
Let’s see what happens with the pending decision from the SEC is a significant market event - it could either catalyze further gains or induce a market correction.
Final Thoughts
It's worth noting that positive mainstream media coverage of Bitcoin has reached a peak not seen since March 22nd of this year, as we highlighted in a recent tweet.
The media sentiment dynamics are pretty simple, really:
media coverage plays a role in influencing Bitcoin's price action
the price action influences the media coverage
Rinse and repeat.