Bitcoin is nearing its April record with traders more confident that U.S. regulators will approve the launch of the first exchange-traded ETF based on cryptocurrency futures contracts. The major cryptocurrency rose 2.61% to $ 58,952 this morning after hitting $ 59,664, the highest level since mid-April. It has doubled in value this year and is not far off its April record at $ 64,895. The younger brother, ethereum, also rose (+ 3.16% to $ 3,760).
Purchases spurred earlier by Vladimir Putin’s announcement: “cryptocurrency has the right to exist and can be used as a means of payment,” he said in an interview with Cnbc published yesterday on the Kremlin website. A surprising statement, given that in recent times the Russian authorities have repeatedly expressed themselves in a very critical if not negative manner on the subject.
Then from a tweet from the US Securities and Exchange Commission (SEC): “Before investing in a fund that holds bitcoin futures contracts, be sure to carefully weigh the potential risks and rewards,” reads the tweet. A confirmation, according to experts, of what reported yesterday by Bloomberg which, citing sources aware of the matter, said that the SEC is ready to approve the beginning of trading of the first ETF on bitcoin futures next week.
“Bitcoin is rising because the news has circulated that the US Sec should approve two bitcoin ETFs perhaps next week”, Jeffrey Halley, analyst of Oanda in Asia Pacific, confirmed to milanofinanza.it, adding that above 60,000 dollars the next target and $ 65,000. Ben Caselin, head of research and strategy at Asia-based cryptocurrency exchange platform Aax, told Reuters that bitcoin’s spike above $ 59,000 is not arbitrary and that long-term investors were piling it up. for a while. “The fourth quarter is widely expected to see significant progress around a bitcoin ETF in the US,” he said.
Several fund managers, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie, and Galaxy Digital Funds have asked to launch bitcoin ETFs in the United States. Bloomberg specified that ProShares and Invesco’s proposals are based on futures contracts and were presented following mutual fund rules which, according to SEC chairman Gary Gensler, provide “significant protections for investors”.
While Bank of England number two, Jon Cunliffe, warned this week that the next global financial crisis could come from the world of crypto, the regulatory framework must be changed as soon as possible to avoid it. Cunliffe compared the explosion in the use of cryptoassets, which in five years went from $ 16 billion to $ 2.3 trillion, to the boom in subprime mortgages, which reached $ 1.2 trillion at their peak in 2008. A warning also came from MSCI: the companies that make up the largest index in the world have 7.1 trillion invested in cryptocurrencies.
Waiting for the official OK to the ETF, the market is shaking, “anticipating a new all-time high for bitcoin. Predicting it already now, however, would be madness”, Simon Peters, eToro crypto market analyst told milanofinanza.it. “The current bitcoin cycle appears to be similar to that of 2013. A supply squeeze is underway and BTC is being withdrawn from exchanges. A leap to a new all-time high this month and / or early November would be in line. with the 2013 cycle model, but we can’t be sure, ”Peters said.
In the last seven months, the behavior of “HODling” has dominated (HODL is representative of a typo of the verb hold, which later became a symbol of those who avoid short-term speculation, but prefer to keep cryptocurrencies in their wallet for longer, ed). According to Glassnode, over 2.37 million BTC has migrated from short-term to long-term holders over this time period. To give some context, about 166,000 BTC have been mined in the last 7 months; This means that long-term holders have HODled 12.7 times more coins than were mined.
That said, “focus on if and when to hit a new high and a short-sighted approach. Crypto investors should focus on the long-term benefits and use cases of tokens, while focusing on short-term price movements and a highly risky approach for anyone, “Peters pointed out. “The all-time high will update over the long term, while in the short term we could see some resistance at the $ 58,000-60,000 level and potentially a pull-back before picking up again.” (All rights reserved)
