BlackRock also supports the bill...Will Bitcoin (BTC) hold $60,000 amidst a bloodbath in stocks and coins?

▲ Iran, Bitcoin (BTC), Asian Stock Market / ChatGPT generated image

BlackRock (BLK) has come out in support of the U.S. cryptocurrency market structure bill. At the same time, a sharp decline in Asian stock markets combined with a technical collapse has put Bitcoin (BTC) into a defense battle for $60,000.

Lark Davis, host of the crypto podcast The Lark Davis Show, claimed in a video uploaded on July 28 (local time) that BlackRock's support increased the likelihood of the bill passing. Davis cited BlackRock's track record of leading the approval of Bitcoin and Ethereum (ETH) ETFs, stating, “BlackRock doesn't miss.” He further explained that BlackRock, Charles Schwab (SCHW), Fidelity, and Goldman Sachs (GS) are pushing for the bill's passage.

The U.S. Senate postponed the bill's review to first address the Russia sanctions bill. It is reported that a related vote is unlikely to be held before next week. There is also little time left to process it before Congress's recess on August 8. Davis predicted that the bill would eventually pass Congress, saying, “The only question is whether it passes before or after the recess.”

When the bill's schedule was delayed, Asian stock markets also plummeted. The Korean stock market fell by over 10%, while Japan and Taiwan each dropped by approximately 4%, and China by 1.3%. Davis explained that the sell-off in memory semiconductor stocks exacerbated the decline, with Samsung Electronics and SK Hynix accounting for about half of the Korean index. SanDisk has fallen 50% in the last six weeks.

Bitcoin fell below its 20-day and 50-day exponential moving averages and also broke out of an ascending channel with a range of approximately $4,000. Davis's downside target is $60,000. He assessed that the market has entered the late stage of a bear market, characterized by aimless fluctuations rather than sharp declines. The passage of the U.S. cryptocurrency market structure bill could be a positive catalyst, but its rejection could act as a negative factor for the market, he added.

Davis reported that the volume of S&P 500 short selling is nearing a 15-year high amid widespread expectations of a surprise interest rate hike. He argued that there isn't sufficient justification for a rate hike, as consumer and producer price indexes have slowed. However, he explained that rising oil prices and the situation in the Middle East could be used by the Federal Reserve as a reason to raise rates. He also raised the possibility of a large-scale short squeeze, given the accumulation of short positions across the market.

[Key Summary of the Article]

-BlackRock and major U.S. financial companies are publicly supporting the passage of the U.S. cryptocurrency market structure bill.

-An analysis suggests that Bitcoin could drop to $60,000 due to a combination of sharp declines in Asian stock markets and delays in the bill's schedule.

-The volume of S&P 500 short selling nearing a 15-year high also raises the possibility of a large-scale short squeeze.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*