Don’t Be Fooled, Bitlicense Is Not A Game Changer

Don Lawsky is set to unveil the long awaited Bitlicense. Bitlicense will codify how virtual currency businesses are to conduct themselves vis-a-vis New York State residents. The first draft of the edict was released last summer. The reaction by many businesses and crypto enthusiasts was overwhelmingly negative. Businesses and individuals were allowed to submit their comments in hopes that Don Lawsky would take pity on his vassals.

The final version is expected to be released any day now. For some odd reason, many traders think that Bitlicense will create the conditions for a rally. Regulatory clarity is certainly a good thing for Bitcoin, but it is no secret what provisions and restrictions will be in Bitlicense. Bitlicense will not make it easier or more difficult for people to obtain Bitcoin. itBit obtained their blessing to conduct business across America before and without Bitlicense. The price since itBit’s “historic” launch in the US is much lower, and looks to retest $220. Some also think Bitlicense is a good omen for an eventual launch of an ETF. The SEC is not going to suddenly approve a retail investment product for Bitcoin just because one state has some rules for Bitcoin businesses. Save your Hopium for Hilldog 2016, cause your going to need it.

Any price rally attributed to Bitlicense should be sold into. If you believe a final version will be released this week, go long weekly volatility using BVOL7D. Rise or fall, the increase in volatility will make you money. If the price rallies consider selling XBTM15 above $230, with a downside price target is $220 and an eventual retest of $213.