- The anticipated shutdown of the U.S. Government might affect the price of Bitcoin.
- Market sentiments are mixed, despite Bitcoin maintaining an upward trajectory.
The United States gross domestic product figures for the second quarter of 2023 are due for a tool out on the 28th of September. Along with this information, is the Personal Consumption Expenditures (PCE) data that is scheduled for roll out a day after.
As the U.S. market awaits the aforementioned data, Bitcoin remains in a crucial position, as growing fears towards the anticipated “U.S. government shutdown” heightens.
According to a previous report by Reuters, the U.S. government services might shut down, and thousands of its workers might go on without pay if Congress is unable to provide funding for the fiscal year in the coming month. The new development comes at a time when Bitcoin, the most valued cryptocurrency by market cap, is still struggling to catch up to market predictions.
With the apex cryptocurrency falling into the red and green zone from time to time, the next few weeks could see Bitcoin either outperform or underperform. Laying down their expectations for the perceived future, some market players have taken to X, formerly Twitter, to analyze the current state of the Bitcoin market.
Analyst speaks on the current state of the Bitcoin market
Popular cryptocurrency analyst, Willy Woo, also shared his thoughts, explaining that buying an inventory of Bitcoins on cryptocurrency exchanges will do nothing to boost the price of the asset. Woo asserted:
Will buying up the inventory of BTC on exchanges increase the price? NO! This is a fallacy. This happened all through the 2022 bear. There’s no supply shock because synthetic BTC via futures markets is added to inventory. The market made a bottom when futures markets relented.
Will buying up the inventory of BTC on exchanges moon the price?
NO! This is a fallacy. This happened all through the 2022 bear.
There's no supply shock because synthetic BTC via futures markets added to inventory.
The market made a bottom when futures markets relented. pic.twitter.com/o7wgJbeSju
— Willy Woo (@woonomic) September 24, 2023
He went on to explain that investors can buy exposure to BTC if they buy a futures ETF. However, this action will not create any supply shock, unless a spot Spot ETF is in the mix. It is worth noting that over the last 7 years, the SEC has rejected every spot ETF filed by institutions. Woo wrote, in a follow-up tweet.
On a personal note… neglecting to account for the macro impact of paper BTC was a big failure of mine. I saw the market bullish in early 2022 by reading on-chain (spot) flows as bullish, all the while the leviathan of futures impact was saying the opposite.
At report time, Bitcoin is trading at a press time price of $26,285. Although the asset has managed to maintain an upward trajectory, movement has been slow. Notably, Bitcoin has only seen its value surge by 1% in the last 30 days. Over the last 24 hours, Bitcoin has lost 0.83% of its gains. On the other hand, trading volume has surged by 66% within the 24-hour timeframe.
