Bitcoin bullish on SEC hope while stock markets subdued because of Middle East threat

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Last Updated on 6 November 2023 by CryptoTips.eu

A very strange divide was noticeable between crypto- and financial markets on Monday morning. Bitcoin and most other major cryptocoins soared higher (mostly on the news that a Bitcoin ETF could be approved soon) while global financial markets were hammered by the threat of an expansion of the war between Israel and Palestine into a regional conflict.

Bitcoin even briefly touched $30,000 after a fake message from Cointelegraph about an approval of a spot Bitcoin ETF.

If Lebanon or one of Israel’s other neighbors were to come to the aid of the Palestinians, the Israeli invasion of Gaza risks expanding to the entire Middle East region. The main consequence of this would likely be a rise in oil prices, which would push global energy prices back up and fuel inflation. So you understand that markets are nervous.

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SEC does not appeal

Meanwhile, Bitcoin rose quickly and touched $28,000 again after Asian investors digested the weekend news.

This was seen as positive because the American stock exchange watchdog SEC decided not to appeal against a judge’s ruling that allowed Grayscale to continue their Bitcoin ETF (exchange traded fund) application.

Gary Gensler, the chairman of the SEC, will of course continue to try and delay a Bitcoin ETF as much as possible, but investors realize that such a fund will definitely happen at some point in time.

“The news in the U.S. over Grayscale’s ETF application has potentially very significant ramifications for the bitcoin market. The story of spot price ETF approval has been a dominant narrative in the bitcoin market for several months now,’ explained Simon Peters, market analyst at eToro.

“As the barriers to approval fall, hopes among investors continue to rise that we could see these products in the market sooner rather than later.”

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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