In the world of Bitcoin, all eyes are on the looming options expiry as traders brace themselves for the potential of another drop below the $26,000 mark.

The market is filled with anticipation and uncertainty as this event could have significant implications for the future price movement of the leading cryptocurrency.

With the expiry date fast approaching, analysts and investors closely monitor the market dynamics to gauge the likelihood of Bitcoin experiencing further downward pressure.

In this Bitcoin price prediction, we delve into the factors influencing the current market sentiment and explore the potential outcomes of the imminent options expiry.

Bitcoin Price

The current price of Bitcoin is $26,466, with a 24-hour trading volume of $11.7 billion. Over the past 24 hours, Bitcoin has experienced a marginal increase of nearly 0.10%.

Bitcoin
Bitcoin Price Chart – Source: Tradingview

BTC Struggles to Break Free from Consolidation Phase Amid Regulatory Actions

Bitcoin (BTC), the world’s most valuable cryptocurrency, is trading above the $26,000 level but has been unable to break out of its consolidation phase. This lack of upward movement can be attributed to the bearish sentiment prevailing in the crypto market, which has experienced dips partly due to regulatory actions taken by the United States Securities and Exchange Commission (SEC) against major exchanges like Binance and Coinbase.

In addition to regulatory concerns, inflation worries and central bank actions have added to the overall uncertainty in the crypto market. Despite these challenges, Bitcoin has recently demonstrated stability by maintaining its position above $26,000.

If Bitcoin successfully surpasses the resistance level at $26,750, it could experience a significant increase in value. Given the current landscape of regulatory developments, inflation concerns, and central bank actions, the performance of Bitcoin will be closely observed as it strives to overcome resistance levels and regain momentum.

Impact of Regulatory Concerns and Outflows on Bitcoin Price

Recent data from Glassnode indicates a slight uptick in short-term Bitcoin holders selling their coins. However, this increase is not as substantial as the peak levels observed during major events last year. Approximately 0.82% of the Bitcoin held by short-term holders is being transferred to cryptocurrency exchanges.

Although this percentage has risen, it remains lower compared to the peak inflows witnessed during the collapse of TerraLUNA and the FTX exchange.

On the other hand, the recent actions taken by the US Securities and Exchange Commission (SEC) against Binance.US and Coinbase have led to significant outflows from Binance. This trend of outflows can be attributed to investor panic triggered by the motion to freeze assets and the delisting of advanced trading pairs involving BTC and BUSD.

Consequently, the increased inflows from short-term Bitcoin holders and the substantial outflows from Binance, driven by regulatory concerns, have recently exerted downward pressure on Bitcoin’s price, resulting in a decline of approximately 2.31% over the past five days.

Well-Known Figures Share Bullish Sentiment on Bitcoin’s Future

Despite the increasing regulatory measures cryptocurrencies face, the Bitcoin market maintains an optimistic outlook. Analysts are predicting a gradual price increase, with notable cryptocurrency strategist Dave the Wave suggesting that Bitcoin could reach $50,000 within a year if the current pattern repeats.

This positive sentiment is also shared by Cathie Wood, CEO of Ark Invest, who believes that Bitcoin will eventually reach $1 million. Wood views Bitcoin as a reliable hedge against economic unrest and inflation. Similarly, Arthur Hayes, another influential figure, expresses a bullish sentiment.

 

Therefore, the positive outlook from influential figures like Dave the Wave, Cathie Wood, and Arthur Hayes is expected to generate enthusiasm among investors and contribute to Bitcoin’s ability to limit significant losses.

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