On Friday evening, May 21, Bitcoin (BTC) fell below $ 35,000 for the second time in a week after China announced a crackdown on Bitcoin mining operations. While short-term Bitcoin investors suffered heavy losses, whales started buying from the bottom.
It is normal for those who have been following the crypto market for a while to hear the Chinese ban news more than once. While this creates panic among new investors in the market, big whales take full advantage of this situation every time.
While the best advice in the crypto market is to continue buying from the bottom, some people have taken it to a whole new level. They predicted that the cost would drop significantly for a number of reasons, including China’s ban on cryptocurrency services, and they used it as a chance to buy. New investors suffered great losses by making panic sales.
Hester Pierce And Cathie Wood Talk About Bitcoin ETF In The Middle Of Final Fix
In addition, while Bitcoin continues to trade at new lows, SEC Commissioner Hester Pierce, popular as a crypto mother, announced that the US Bitcoin ETF is now overdue. Pierce said the SEC’s excuses for not approving the Bitcoin ETF are exhausted. In an interview with Bloomberg on Friday, Pierce added:
“It is long overdue for us to approve a product traded in Bitcoin on the stock market. We know much more now than we did before. I am hopeful that we will have a chance to have a new perspective, as we have a new president interested in this field. “
Despite its high affinity for the crypto space, newly appointed SEC Chairman Gary Gensler gives mixed indications for the approval of the Bitcoin ETF. However, the SEC will announce its decision on VanEck Bitcoin (ETF) in late June.
In an interview with Bloomberg earlier this week, Ark Invest’s Cathie Wood said he was confident of the $ 500,000 BTC target. Also, Wood thinks that with the recent market correction, the likelihood of a US Bitcoin exchange-traded fund (ETF) being approved has increased. “As we make this correction, the realization rate increases,” he said.
The Bitcoin ETF is expected to bring more legitimacy to the Bitcoin market with higher institutional engagement. Also, analysts have argued in the past that the Bitcoin ETF will definitely reduce price volatility.
Institutions Having a Purchasing Frenzy in Correction
OTC transactions on the exchanges soared as Bitcoin (BTC) entered a sharp correction. Institutions are buying from the bottom amid the recent BTC sales pressure. Bitcoin egress from OTC wallets reached its highest level in 2021, according to Glassnode data.
Glassnode’s founder also commented once again that the purchase was made from the strong corporate bottom. This is because the data shows that the capital flows of OTC wallets have reached the highest level this year.
On the other hand, just during the market crash on Friday, Wall Street banking giant Goldman Sachs released a new report saying “Crypto is absolutely crucial,” and announced that they are working to launch more crypto services and products.