In the ever-evolving world of cryptocurrencies , Bitcoin (BTC) is lagging behind, now trading down 0.25% to $36,410 on Saturday. This latest event comes amid significant developments in the cryptocurrency space.
The IMF chief's push to approve central bank digital currencies (CBDCs), Coinbase risks fines for Russia's data localization practices, Fidelity's ambitious plans to expand the ether ETF market, and partnerships with BlackRock and LLC. This growth is fueled by Bitcoin transaction fees. Due to the growing interest in BTC ETFs.
These multiple factors contribute to Bitcoin's dynamic landscape, raising questions about the next support level and broader implications for the cryptocurrency market.
IMF Central Bank Major Supporter of Digital Currencies : Embracing the Digital Currency Era
Central bank digital currencies, or CBDCs, have been promoted by the International Monetary Fund's (IMF) executive director, Kristalina Georgieva, who says they could effectively replace cash. Speaking at the Singapore FinTech Festival, Georgieva highlighted the need for the public sector to implement central bank digital currencies to facilitate cross-border payments.
He highlighted the potential of digital currencies for central banks to improve financial inclusion and improve their cost-effectiveness, especially in island economies. The IMF has also published the Central Bank's Digital Currency Guidelines as a resource for international policymakers.
Georgieva urged countries to be open to the potential implementation of CBDCs in light of regulatory developments in digital currencies.
The impact of Bitcoin from this perspective is that digital currencies will become more accepted, and central bank debates on digital currencies and the exploration of digital alternatives may influence the future development of international finance.
Coinbase Data Localization Issues : Faced with bans in Russia
US cryptocurrency exchange Coinbase has been fined more than $11,000 by a Russian court for violating rules requiring foreign companies to identify user data of Russian citizens.
The court found Coinbase guilty of administrative violations of Russian law. Since late May, more than 600 companies have reportedly complied with the law, which requires foreign companies to search databases of Russian users.
Big companies like Apple, Spotify, WhatsApp, Matchgroup, the owner of Tinder and Airbnb have been fined for non-compliance. Some believe that Russia is using the 2014 data localization law as a tool against Western institutions.
This scrutiny of how governments monitor cryptocurrency exchanges for compliance with local data laws could also affect the global regulatory landscape around digital assets and could be a factor in Bitcoin's recent decline.
Fidelity's Crypto Leap : Initiative on Ether ETF and BlackRock Partnership
In an important step towards mainstream cryptocurrency adoption, financial giants Fidelity and BlackRock are launching exchange-traded funds (ETFs) for Bitcoin (BTC) and Ethereum (ETH). Fidelity's latest effort includes introducing an Ethereum-focused ETF following a similar initiative by BlackRock.
Pending SEC approval, Fidelity's proposed Ethereum fund intends to list on the Cboe Global Market Exchange. Both Fidelity and BlackRock use the ETF format to provide investors with affordable access to Bitcoin, the leading cryptocurrency.
These developments, along with their potential impact on the general accessibility and acceptance of cryptocurrencies among ordinary investors, are central to the SEC's regulatory decisions.
Bitcoin price surge: The impact of the ETF craze
The bitcoin blockchain saw average transaction fees increase 746% to $11.6 billion on Nov. 16, with expectations for approval to send US bitcoin exchange-traded funds (ETFs) skyrocketing. The average transaction fee is now $18.69, a 113% increase from the previous day.
The increase was driven by increased demand for BTC ETF filings with the Securities and Exchange Commission (SEC) by major asset managers such as BlackRock, Fidelity, ARK Invest and WisdomTree.
As the SEC works with companies on proposals to extend the final decision deadline to January 2024, analysts expect a 90% chance the ETF will be approved in January. This potential acceptance is expected to attract institutional investors and push Bitcoin to record levels in the coming months.
Bitcoin price prediction
The critical pivot for Bitcoin is currently $35,875, which is a major factor in its near-term trajectory. It faces immediate resistance at $36,656, with the next thresholds at $37,190 and $38,025, which could indicate an upside trend if broken. Support levels at $35,260, $34,540, and $33,700 are needed to cap the downtrend. 
Overall, Bitcoin's outlook above $35,875 looks cautiously optimistic. Subsequent moves depend on a break above key resistance, which could indicate strong upside momentum. However, due to the inherent volatility of markets, external influences can change direction quickly and traders need to be cautious.
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