Bitcoin Peaks at 17-Month High Amid ETF Launch Anticipation in the US
Summary:
Bitcoin reached a 17-month high due to heightened anticipation around the launch of a Bitcoin exchange-traded fund (ETF) in the United States. Despite prices dipping slightly later, the cryptocurrency's prospects remain bullish. Data showed a global increase in Bitcoin ETF inflows, while financial experts suggest an ETF approval could lead to more such approvals. However, while some traders took advantage of these highs, others expressed caution about the potential for a significant price drop.
Bitcoin surged to a 17-month high on October 24, driven by expectations around exchange-traded funds (ETF) which lent further strength to already bullish Bitcoin price movement. According to data from Cointelegraph Markets Pro and TradingView, the cryptocurrency reached $35,198 on Bitstamp and later settled, reflecting a 17% increase from the previous week's close and marking the highest Bitcoin level since May 2022.
Although the price fell below $34,000 later, there was a prevailing bullish sentiment around Bitcoin in anticipation of a possible Bitcoin spot price ETF launch in the United States. For years, this awaited launch faced regulatory hurdles in the US, but following the listing of the iShares Spot Bitcoin ETF on the Depository Trust & Clearing Corporation website– who facilitate NASDAQ trades–expectations escalated.
Consequently, public Bitcoin ETF globally reported a 10% rise in year-to-date inflows within 24 hours, according to Bloomberg data. The Kobeissi Letter, a financial commentary publication, suggested that if the SEC approves the ETF, it would open doors for many more Bitcoin ETF approvals. The publication pointed out that amidst global geopolitical issues, Bitcoin is regarded as a safe asset.
Certain traders and market trends illustrated a disconnect regarding Bitcoin's future price prospects. Some market participants publicly expressed their skepticism and bearish sentiments despite the recent highs.
Additionally, Ninja, a prominent trading account, cautioned about the absence of CME Group Bitcoin futures gaps above the spot price but plenty below. This led some to still consider $20,000, which also corresponds with a CME gap, as a legitimate downside target.
Meanwhile, others capitalized on the highs by selling, including Maartunn, an analyst and contributor to CryptoQuant's on-chain analytics platform. A trader, Skew, observed order book changes during the price rise, noticing market makers selling.
Crypto Chase, a trading analyst, voiced that the recent price crossover into the mid 30k range might just precede ETF approval, and it wouldn't be surprising if there's a sell-off following the announcement. Decentrader's co-founder, Filbfilb, expressed scepticism on Twitter about the nature of the latest gains compared to other escalations in 2023.
Published At
10/24/2023 7:24:30 AM
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