Why Analysts Expect an Increase in Bitcoin Price Volatility This Week

Market watchers expect some volatility ahead for the price of Bitcoin (BTC). Among the reasons behind it is the increased activity on the chain and the influence of the spot Bitcoin ETF (Exchange Traded Fund) approved by the US Securities and Exchange Commission (SEC).

BlackRock expects positive news from the financial regulator regarding its spot Bitcoin ETF application on January 10. Interestingly, this date coincides with the SEC's deadline to approve or reject the ARK 21 shares space Bitcoin ETF application.

Bitcoin ETF Decision Looms

Eric Balchunas, Bloomberg's senior ETF analyst, explained SEC Chairman Gary Gensler's lack of opposition to the launch of a Bitcoin ETF. He described Gensler's refusal as insufficient and indicated his priority direction for SEC staff to cooperate with Bitcoin ETF applicants.

“[Gensler] “This is the guy who directed his staff to commit thousands of man-hours to work with 11 issuers on 5-10 rounds of feedback and recently told them they wanted these lined up for the 1/11 launch,” Balchunas added.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

This understanding follows a series of discussions and meetings the SEC has had with Bitcoin ETF applicants that have resulted in several updates. Notably, BlackRock was one of several applicants to file a 19b-4 amendment with the SEC on January 5th.

Satoshi Nakamoto woke up

Meanwhile, a surprising incident occurred when an anonymous individual transferred more than $1 million worth of BTC to Satoshi Nakamoto's wallet.

The individual received the assets from Binance and transferred them to Nakamoto's wallet, creating curiosity and speculation in the crypto community. This transaction has led to various speculations, from Nakamoto's possible resurgence to an unusual trading strategy related to a nearby Bitcoin ETF.

“Either Satoshi wakes up and buys 27 bitcoins from Binance and puts them in their wallet, or someone burns a million dollars,” said Conor Grogan, director of Coinbase.

What's more, increased activity among Bitcoin whales, including this mysterious transaction, suggests recent bullish market volatility. Blockchain security firm Sentiment has announced that whale trading has peaked since June 2022.

According to the firm, the increase in whaling activity is expected to mitigate future market volatility and uncertainty.

“There may be some volatility ahead with whaling transactions peaking on June 12, 2022. Prices often show a breaking cycle when whaling activity increases,” Santiment said.

Bitcoin prices were largely muted this weekend. BTC briefly surpassed $44,000 in the last 24 hours before returning to $43,986.