Analyst predicts crypto market recovery, while SEC unlikely to approve Bitcoin ETF in 2022

Analyst predicts a recovery in the digital asset market

According to Currency.com analyst Mikhail Karkhalev, the crypto market has passed the negative trend that has lasted since May and is associated with the actions of the Chinese authorities in relation to industry participants. This indicates a gradual recovery in the market.

“Repeated attempts by sellers to push the price below $30,000 met with quite aggressive resistance from buyers who used any drawdown as an opportunity to buy bitcoin and other coins cheaper,” Karkhalev explained.

Venture investor: Bitcoin ETF will not get SEC approval next year

Well-known businessman Kevin O’Leary expressed his opinion on why large investors are in no hurry to invest in digital assets. According to the entrepreneur, this is due to concerns that cryptocurrencies will not receive regulatory approval.

O’Leary considers the infrastructure bill a “missed opportunity” as no amendments have been adopted to exempt various industry players from taxes. The entrepreneur pointed out that more meaningful regulation will help attract institutions to the market.

O’Leary is confident that the US Securities and Exchange Commission will not agree on the issue of Bitcoin ETFs next year.

Facebook may opt out of Diem

The company responsible for the development of the Diem crypto project, Novi Financial, backed by Facebook, may start collaborating with third-party stablecoin developers. This is probably due to the next regulatory difficulties of the project.

We would like to remind our readers that in 2019, Facebook announced plans to release its own Libra token, which was later renamed Diem. And last year it became known about the creation of the Novi Financial division, whose task was to develop a virtual wallet of the same name for Libra.

Then the initiative received support from PayPal, Mastercard, Visa, Booking and other large companies. However, later on, many of them had to refuse to participate due to difficulties with global regulators. Sources believe Novi Financial may do the same.

Circle and Paxos are named as possible partners. Both projects recently published for the first time reports on the provision of related tools.

“This is probably why you’ve seen Paxos and Circle going at each other publicly…they want to win big accounts like this!”- said The Block journalist Frank Chaparro.