First, DTCC provides clearing and settlement services to the financial markets. It facilitates buyers and sellers of securities to make their exchange in a secure and efficient manner.
If a Bitcoin ETF is listed on the DTCC, it means that the ETF’s transactions are cleared and settled through the DTCC’s systems. So, DTCC operates under the regulatory oversight of the SEC. That means the Bitcoin ETF complies with the relevant regulatory standards. DTCC involvement generally comes during the final stages of an ETF going live. Let’s discover more about the direction of the crypto market after the BTC ETF.
NEW – BlackRock's iShares #Bitcoin Trust is now listed on the Depository Trust & Clearing Corporation with the ticker $IBTC pic.twitter.com/kV8zxzJrEv
— Bitcoin Magazine (@BitcoinMagazine) October 23, 2023
Implications for Bitcoin
There are three things that we think will influence Bitcoin’s behavior:
- More liquidity.
- More accessible to a broader range of investors and institutions.
- ETF listing on exchanges is imminent.
This points to a lot of positive sentiment coming to the market. Bitcoin halving is expected at the end of Q1-2024. Both factors are definitely bullish for Bitcoin in the next 6 months.
Bitcoin’s Halving Preparation
Notice Wave 1, Cooldown, and Wave 2. This is a generic pattern. Let’s look at the following chart:
First Halving (2012)
Second Halving (2016)
2016 had exponential Wave 1 and a short Cooldown period. This established 3 things:
- Slow Wave 1 brings a slow cooldown.
- Aggressive Wave 1 brings an aggressive cooldown.
- Cooldowns are roughly a dip of 40%.
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Third Halving (2020)
2020 had a slow Wave 1 and thus a slow Cooldown period. However, Wave 2 was cut short due to COVID-19 and it continued upward movement after that. This further establishes that:
- The cooldown period differs for each cycle.
- Macro anomalies can impact the halving cycle.
- Wave 2 can be less in magnitude compared to Wave 1.
Fourth Halving (2024)
Wave 1 and the Cooldown period happened already. We accumulated and created the portfolio in September, during the last phase of the Cooldown period.
Now we are in the Wave 2 phase. The aggressive reaction to the end of the cooldown period was intensified by the ETF news. It will be crucial in Q1-2024, and if the Bitcoin ETF is approved and starts trading on exchanges before the halving, we can expect a halving dump and altcoin rally.
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Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
