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Bitcoin Price Eyes $70k Rebound as Korean Investors Seek Crypto ETFs Approval

By:
Ibrahim Ajibade
Published: May 28, 2024, 17:32 GMT+00:00

Key Points:

  • Korean regulators are under mounting pressure to approve cryptocurrency exchange-traded funds (ETFs).
  • A prominent digital currency data provider in Seoul has criticized the ban on digital assets in traditional securities markets, labeling it as 'outdated'
  • Bitcoin (BTC) price fell 2% within the daily timeframe on May 28.
Bitcoin (BTC) Price

In this article:

Bitcoin price looks set for $70,000 rebound as investors in South Korea heap on regulators to approve cryptocurrency exchange-traded funds (ETFs) following the recent approvals of BTC and ETH spot derivatives in the US.

After US SEC’s ETF Nod, Crypto Investors Pile Pressure on South Korea Regulators

Currently, crypto ETFs are banned in South Korean traditional trading markets. However, according to local media, the US SEC’s recent decision to approve  Ethereum (ETH) and Bitcoin (BTC) derivates has exerted pressure on Seoul’s financial regulators to reconsider their stance.

The U.S. SEC approved the creation of Ethereum ETFs, the second-largest cryptocurrency, on May 24, 2024, after previously giving the go-ahead for Bitcoin ETFs in January 2024.

Meanwhile, South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) remain hesitant about allowing crypto asset trading in traditional securities markets.

However, a prominent digital currency data provider in Seoul has criticized the ban on digital assets in traditional securities markets, labeling it as ‘outdated’ and calling for revisions to reflect the increasing importance of digital assets in contemporary finance.

“Under the circumstances, the SEC’s Thursday decision on Ethereum is anticipated to press Seoul’s financial regulators to reconsider its regulations against digital assets.” –

  • Xangle, a leading Cryptocurrency data provider based in Seoul.

 

Jung Eui-jung, who heads the Korean Stockholders’ Alliance, emphasized the need for Seoul to emulate the U.S. by approving Bitcoin and Ethereum ETFs. He highlighted that the current reluctance is generating widespread frustration, not just within the crypto community.

Jung cautioned that if Seoul’s regulators remain stagnant while the U.S. moves forward, investors may transfer their funds to U.S. markets. He remarked that it is only a “matter of time before the U.S. fully opens up to other lesser-traded cryptocurrencies.”

Bitcoin Price Forecast: BTC to Defend $65,000 Support

Bitcoin price is exchanging hands at $67,763 at the time of publication on May 28, having tumbled 2.3% within the daily timeframe amid worries that Mt Gox creditors could liquidate their BTC holdings as refund payments are set to begin this week.

However, as investors await inflows into ETH ETFs due to go live in the coming days BTC price looks set to hold a relatively high support level and avoid a reversal below the $65,000 territory.

In affirmation of this stance, IntoTheBlock’s Global In/Out of the Money Around Price data shows that BTC bulls could mount a major support buy-wall at the $65,000 level.

Bitcoin Price Forecast (BTC/USD, May 28, 2024) | TradingView
Bitcoin Price Forecast (BTC/USD, May 28, 2024) | TradingView

As seen above, 1.64 million active Bitcoin addresses had acquired 903,760 BTC at the maximum price of $65,830.  To avoid slipping into a loss position, majority of those holders could make frantic covering purchases.

In scenario, Bitcoin price will like rebound toward the $70,000 level in the days ahead.

But if the market correction intensifies, losing the $65,000 support could put BTC price a rapid reversal towards the next key support level around $63,800.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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