Bitcoin Surges Above $30k; Potential ETF Approval Fuels Optimistic Market Sentiments
Summary:
On October 23, Bitcoin remained above $30,000 as financial experts predict the cryptocurrency might negate the expected downcast trend. Experts contend a "breach" of the $31,000 mark could render bearish predictions irrelevant. Analysts attribute the ongoing rally to the anticipated approval of the U.S.'s first Bitcoin spot-price based ETF. The Grayscale Bitcoin Trust continues to narrow its discount to the Bitcoin spot price, reaching its smallest negative margin since December 2021.
On October 23, Bitcoin (BTC) remained above $30,000 as Wall Street began trading, raising hopes among financial experts that the current robust health of the cryptocurrency might displace the prediction of a downcast market trend. As per Cointelegraph Markets Pro and TradingView, BTC/USD was hovering around the $30,700 mark, indicative of a 2.5% increase on the day.
Bitcoin had seen a sudden rise following the weekly close on October 22, culminating just under $31,000, marking the most substantial record since July. Rekt Capital, an esteemed trader and market analyst, is eager to witness the surge past the $31,000 resistance.
Rekt Capital posited that provided Bitcoin's price "breached" the $31,000 mark, it could sentence the bearish chart pattern from 2023 to irrelevance. The bearish prediction centered around an understanding that the year-to-date highs close to $32,000, integral to a double top formation, were due for a downward adjustment.
Additional signs of encouragement came by way of the True Market Deviation indicator derived from on-chain analytics platform Glassnode. Checkmate, lead analyst at Glassnode, pointed out that the Average Active Investor (AVIV) profit ratio, the metric for this indicator, had crossed an important level.
As for the factors propelling the rally, James Van Straten from crypto insights company CryptoSlate identified the expected approval of America's inaugural Bitcoin spot-price based ETF as a significant contributor.
Despite having yet to receive approval, the Bitcoin spot ETF is widely believed to arrive following numerous legal disputes which have lessened regulatory influence. Van Straten pointed out the significant upturn in bullish investments in the crypto market, triggered by the anticipated ETF endorsement.
He referenced data from Glassnode indicating a marked increase in investments via over-the-counter trading desks since the end of September. Van Straten also talked about the Purpose Bitcoin ETF observing a continuous inflow of funds in the previous month.
While not considered substantial, these inflows represent a positive market sentiment. According to Van Straten, this elevated level of investment across several platforms showcases the market's upbeat reaction to the possible approval of a Bitcoin ETF, which would positively influence the entire ecosystem of digital assets.
Lastly, the largest institutional funding channel for Bitcoin, the Grayscale Bitcoin Trust (GBTC), continues to minimize its discount rate to the Bitcoin spot price, already marking its smallest negative margin since December 2021. The data collected by CoinGlass stated a reduced discount rate of -13.12% as of October 23.
Please note that this article does not provide investment advice or recommendations. Every investment and trade involves risk, and individuals should independently research before making any decisions.
Published At
10/23/2023 3:20:00 PM
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