Bitcoin (BTC) is trading around $28,200 after a false report about the Securities and Exchange Commission (SEC) approving the first spot bitcoin ETF pushed the price of the world's largest crypto by market cap to $30,000 Monday.
The state of crypto is presented by Tron connecting the world to the power of Cryptocurrency. Gray scale is mulling its next steps after the SEC failed to appeal its court loss over the crypto asset manager's application to convert its Bitcoin Trust into a Spot Exchange traded Fund. In other words, Greyscale now needs to figure out what to do because the SEC isn't challenging it. Well, Greyscale, by the way, uh owned by DC G uh parent company of Coin Desk. Joining us now to discuss uh this whole situation is path trading partners, co-founder and Chief Market strategist Bob Aino. Welcome Bob. Good to see you guys again. Good seeing you. So, uh you know, we had this false report that the SEC approved uh uh an ETF a spot ETF in Bitcoin. Um It, it came out on Twitter. Uh We don't have to go into the specifics but uh it was removed right away. It was turned out, it turned out to be fake in the process. Bitcoin shot up to $30,000. Uh You had a bunch of uh you had uh I want to say the words uh you know, uh liquidations if you will. Um, but when I look at the numbers that happened yesterday, it's nowhere near the kind of, uh, liquidations. We used to have a margin calls if you will, uh, back in the day a year or two ago. I mean, they, they're like an order of magnitude, uh, 10, they're 10 down from what they were before. What does this tell us about demand in the crypto markets? Either for a spot ETF or in general for the spot market compared to what it was a year ago when you had more leverage players. Well, first of all, I think uh Gary Gensler was a source of that tweet. I mean, I'm obviously kidding. But um i it's very much points out. One of the problems that Gary Gensler has uh justifiable or not is that you can get something on social media that could cause such a uh quote unquote pump and dump. I hate using those cliched phrases, but that's really what it was and no one can be held accountable, accountable for it because the SEC isn't regulating it as of now in terms of it being an ETF. So it Gary Gensler wants to, he can point out the volatility that that caused as one of the reasons he's delaying the approval for it. Uh That's just a market that isn't mature in the sort of old school public investing sense. But having said that what you're seeing from this is you mentioned the liquidations. I, I was actually watching the Bitcoin Futures at the CME through most of that session because I happened to be involved for myself in some futures trades at that point. And the volume was the highest we'd seen since mid August. But the balance of it being liquidation versus new positions and new positions that didn't get exited, right. That weren't covered. Uh Was I think pretty impressive to your point, Lawrence. When you look at it like that, you're seeing peop you're seeing the inevitability. I think of these ETF S regardless of whether that tweet was false or not, it clearly was Coin Telegraph put out. I I believe it was them right? It was Coin Telegraph. Uh they put out an apology about that tweet, but the core of that tweet is likely to be fact in the very near future is that somebody's going to get a spot, Bitcoin ETF and it's going to be very uh uh critical to the upside for Bitcoin specifically. And that's part of the reason I don't think you see the exiting despite the volume being higher. Uh Bitcoin itself is at very critical technical levels in the way that we watch technicals. And as long as it stays above now, 27 500 this is a longer term shift in Trent did, did, did some of those positions. So that were, that were, that were put in place in anticipation of an sec. Uh decision or an sec approval? Did they get wiped out yesterday? And in other words, like now that that's happened and those guys got wiped out. Do you think that they put on those positions again? What, what, what do you think happened here? Uh to, to those who are, who are positioning for an approval? Oh, from what I saw in my experience in watching markets day to day, it seemed like a mix and what I mean by that is all mature markets have a speculative component and an investing component component and Bitcoin's investing component is becoming larger and very serious. So the investing component of it not only didn't exit those trades but they put on more as that dump, part of the pump and dump happened and that's seriously positive for the asset. In my view, in my view, you know, Larry Fink uh on an interview yesterday called Bitcoin a flight to quality asset and I I just agree with him. I think Bitcoin is a high beta flight to safety. And that's a different thing. When you look at safety, you're looking at return of capital, preservation of capital. When you're looking at quality, you're looking at things like uh low volatility, dividend, paying stocks or us treasury bonds. Uh you're not looking at something like Bitcoin. Bitcoin is turning into an asset that people think will protect their core wealth. And that again, to me is one of the long term bullish signs of the asset class itself and a Bitcoin specifically Bob. What do you think the likelihood is that we get several or all of the spot? Bitcoin ETF applications approved at once like we saw with the recent E futures ETF si think nine were approved. Yeah, I think it's gonna be a waterfall. I don't think they're gonna one and then go through each one with a comb of the people we ask in. You've got black rock, you've got K you wood at arc. Um You've got gray scale. These are all. Yeah. What's the word? High quality issuances theoretically from the way that the classic investor base looks at them. So I think it's gonna be a waterfall of ETF S and then it's gonna be a matter of how they're structured, what the actual assets underneath the ETF are and uh the, the fees on them and that'll cause flow into those ETF S which will cause flow into Bitcoin itself. All right. And quickly before we go, we got to get the predictions in here. You know, I'm a predictions type of gal. What do you see the uh next support and resistance levels at uh 27 500 is my critical support here. And that again confirms we get a close above their Friday. I like to look at weekly charts because weekly charts have more data in them just by nature of the fact that the clothes matters the most. And after a week's worth of price action, you get the weekly clothes. So if you get a close above 27 500 again, this is a longer term shift for me from that downtrend we've been in since about May to a new uptrend that's likely going to go above those highs of May. All right, Bob. Thank you so much for joining the show. It was wonderful seeing you again. Good to see you guys, those path trading partners, co founder and Chief Market strategist Bob Iino.