Top 3 Bitcoin, Ethereum and Ripple Price Predictions: 3 scenarios for the Direxion ETF decision on September 21st


  • Direxioמ's Bitcoin ETF request is a high profile one and is set to move all cryptocurrencies.
  • The deadline delay raises the stakes for the upcoming decision as coins await impatiently.
  • The reactions are different in three different scenarios and for each of the three top coins.

On July 24th, the US Securities and Exchange Commission announced a delay in the decision to approve or disapprove the Bitcoin ETF decision to September 21st. The decision was a disappointment from cryptos that had already suffered from a decision regarding A similar suggestion from VanEck.

Why are Exchange Traded Funds so significant? Basically, ETF's open the gates for mainstream traders, investors, and speculators to dive into the world of cryptos. By investing in an ETF, the managers of that ETF would need to buy the underlying asset, thus Bitcoin. 

More: Bitcoin ETF explained: 9 questions and answers about the critical crypto catalyst

The previous high-profile ETF request came from ProShares, but it was entirely different in its nature. In ProShare's case, the underlying asset was Bitcoin futures, not Bitcoin itself. The impact will, therefore, be quite different in Direxion's case. 

Update: One day to go, Direxion ETF SEC deadline already inspiring cryptos

Here are three scenarios for the decision and the reactions.

1) Approval

A first break of the Crypto ETF glass ceiling would be great news for cryptocurrencies, and their prices would rise. Bitcoin would be the primary beneficiary as the ETF is directly tied to it and not to others. Bitcoin is enjoying upside momentum against the Altcoins for some time, and this would only strengthen the trend. 

Ethereum, Ripple, and others would also be carried away. Money flowing into Bitcoin could perpetuate other cryptocurrencies. Some of the funds entering Bitcoin will push old money out, and this old money may look for the next growth opportunities. Also, speculation about the next Crypto ETF will begin arising. If Bitcoin can get an ETF, which one will be next? 

2) Delay

A delay has hurt cryptocurrencies many times in the recent past. The reaction would be no different, but the drop may be somewhat muted as this ETF request has already suffered a delay. A postponement of this decision could come along one for the VanEck decision on September 30th. It is hard to see the SEC delay one decision and not do the same for the other one.

The closer the new date is, the weaker the drop in cryptos. A push back to October would slightly weigh on Bitcoin while a delay to December would be more painful. The reaction in the BTC/USD will likely be similar to the one in the ETH/USD and the XRP/USD.

3) Rejection

Rejections have also been commonplace and have sent prices lower. The drop may be especially painful as Direxion is a high-profile ETF and the tension rose after the decision was delayed back in July. Expectations for the September 30th decision will likely fall, but perhaps the hopes for a different outcome nine days later could slightly mitigate the drop.

Bitcoin will likely suffer more than other cryptocurrencies, as it was propped up by expectations for ETF approval. While Ethereum and Ripple will likely drop, they will probably gain against Bitcoin. 

More: Socialized clawback at the crypto-exchange? Time to consider a different way of trading - 4 advantages of trading cryptos with a broker

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Top 3 price prediction Bitcoin, Ripple, Ethereum: Altcoins’ pre-season knocks on doors

As is customary in the Cryptocurrencies market, weekend trading results in significant movements. On this occasion, it is the Altcoin segment – and especially Ethereum –  that opens Monday's session with a considerable gain over Friday's close.

More Bitcoin News

Ethereum (ETH) price analysis: ETH/USD settles below $180.00 amid growing bearish sentiments

The second-largest cryptocurrency with the current market capitalization of $20.9 billion has broken above critical $190.00 to trade at  $194.30 at the time of writing.  ETH/USD has gained over 3% on a day-on-day basis and 2.5% since the beginning of the day.

More Ethereum News

Dash market update: DASH/USD stays on positive side, ignores delisting news

Dash is the 16th largest digital asset with the current market value of $818 million. After a strong growth into the ned of the previous week, the coin has settled at $90.80, trading with a short-term bullish bias.

More Dash News

Ripple market update: XRP/USD settles above $0.2600, upside momentum fading away

Ripple’s XRP, the third-largest digital asset with the current market capitalization of $11.3 billion, made its way above $0.2600 barrier to trade at $0.2630 at the time of writing. 

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Rangebound trading and September blues come upon the crypto market

Bitcoin finishes the week with marginal losses. The first digital currency recovered from the recent low of $9,886 but stayed in the red zone as of the end of the week.

Read the weekly forecast

BTC

ETH

XRP