Analyst explains why VeChain, Zilliqa, EOS, Bitcoin price could rebound

Bitcoin (BTC/USD) price rose for the second straight day as investors cheered the recent Franklin Templeton spot ETF application. The coin is sitting at $26,308, a few points above this week’s low of $24,910.Why is Bitcoin price falling?Bitcoin and other cryptocurrencies have struggled recently amid rising headwinds in the industry. The biggest challenge is that American regulators, especially the Securities and Exchange Commission (SEC) are using a confrontational approach against the industry.A few months ago, the SEC filed major lawsuits against Coinbase and Binance, the biggest players in the industry. These lawsuits will likely have major implications in the industry.The silver lining is that, historically, these lawsuits take years to conclude. We saw that with the SEC vs Ripple lawsuit, which took over 3 years. Another thing is that the SEC could settle with either of the companies.Further, it is unclear whether the SEC will ultimately decide to give its go-ahead about a spot Bitcoin ETF. Well-known companies like Franklin Templeton, Invesco, Blackrock, and Fidelity have all applied for these funds.I believe that the SEC will approve these funds for two reasons. First, all these proposals have a surveillance clause to prevent market manipulation. Second, following SEC’s loss in the Grayscale lawsuit, the agency will want to avoid another legal embarrassment.Only a few will understand… When BlackRock's ETF money flows into #Bitcoin, it will almost instantly push it over $100,000.Some think a Bitcoin ETF won't change much because you can already buy it. But, an ETF has tax perks and you can borrow against it. This makes… pic.twitter.com/5dTdcNe4lW— Mister Crypto (@misterrcrypto) September 13, 2023Monetary policy is another main reason why Bitcoin price is struggling. Interest rates have jumped to a two-decade high of 5.5%. And after the strong US inflation data , there is a high possibility that the Fed will maintain its hawkish tone.As a result, investors are moving their cash to high-yielding risk-free investments like bonds and money market funds (MMF). Some MMFs are now yielding more than 5.5%.Analyst explains the bullish caseDespite the doom and gloom, some analysts believe that we are in the early stages of a major bull run in the crypto industry. A potential bull case is that Bitcoin’s circulating supply active on-chain dropped to a record low of 5.4%. This means that many investors have embraced a buy and hold strategy. In a note, Blockware Solutions said:“Price is set at the margin, which means those who trade Bitcoin back and forth drive short-term price action. As supply-side illiquidity continues to increase, as indicated by fewer supply exchanging hands, any demand catalyst will send the price skyrocketing.”If this happens, other altcoins like THORChain (RUNE), Conflux, VeChain, IOTA, EOS, Solana, Zilliqa, and Litecoin will also jump. In the past, Bitcoin and these altcoins tends to have a close correlation.When Bitcoin price rises, these altcoins jump as well. For example, many altcoins have risen this week as Bitcoin has bounced back after falling to a multi-month low of $24,900.The post Analyst explains why VeChain, Zilliqa, EOS, Bitcoin price could rebound appeared first on Invezz