Bitcoin, Ethereum, Dogecoin Rise On BlackRock ETF News: Why This Veteran Trader Says King Crypto Is 'Hinged To The Downside For Now'

Major cryptocurrencies spurted briefly late Thursday following the news that the iShares unit of BlackRock Inc BLK, filed to the Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF. 

What Happened: Bitcoin on Wednesday dropped below $25,000 to a three-month low, as crypto investors continue to remain apprehensive about the market. Major altcoins have been floundering, with Tether’s USDT stablecoin being knocked off its $1 peg. 

BlackRock, the asset management giant, has initiated the process of launching a spot bitcoin exchange-traded fund. If approved, the fund will pave the way for investors to gain easy access to the cryptocurrency.

The iShares Bitcoin Trust, which has been proposed by the company, would offer a convenient means for investors to gain exposure to crypto in a product from one of the largest players in the finance space.

"The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding and trading bitcoin directly on a peer-to-peer or other basis or via a digital asset exchange," the filing said.

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At the time of writing, the global crypto market capitalization stood at $1.03 trillion, an increase of 0.81% over the last day. 

The U.S. stock market demonstrated a bullish trend as investors speculated that the Federal Reserve’s rate hike journey was nearing its end after the central bank decided to skip a hike this week. 

This resulted in a significant upward surge, with the S&P 500 soaring 1.22% and the Nasdaq Composite gaining 1.15% in the last 24 hours.

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Analyst Notes: "Crypto headlines remain mixed, which is not helping Bitcoin rebound from its recent lows. Another bankrupt crypto exchange in the spotlight, as Bittrex tries to allow withdrawals. BlackRock nears the filing of a Bitcoin ETF," said Edward Moya, Senior Market Analyst at OANDA.

"It is hard to get excited about cryptos when some of the favorite ones with what was believed to have attractive growth potential might be deemed securities. Until the regulatory environment is better, cryptos might struggle here," he adds.

Crypto analyst Michael Van de Poppe shared the Total.3 chart, which shows crypto has entered the depression stage of the cycle. Currently, it is retesting the lows and may potentially make a slightly new one before continuing the upwards grind. Overall, the outlook is positive and the chart is poised for further gains.

Total.3 is a popular charting method on TradingView that shows the total market cap of all the cryptocurrencies excluding Bitcoin and Ethereum.

Veteran trader Peter Brandt is sounding the alarm that Bitcoin may be on the verge of a significant downward move.

Brandt believes that Bitcoin may experience a sharp move to the downside, citing a downward trend in both 18-day and 8-day moving averages as indicators for a potential critical price level."Hinged to downside for now."

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