Bitcoin is nearing its record high in April with traders confident that US regulators will approve the launch of the first exchange-traded ETF based on cryptocurrency futures. The major cryptocurrency is up 2.61% to $58,952 this morning after hitting $59,664, its highest level since mid-April. It has doubled in value this year and is not far from the April record of $64,895. The younger brother, Ethereum, also rose (+3.16% to $3,760).
The earlier purchase prompted Vladimir Putin’s announcement: “Cryptocurrencies have a right to exist and can be used as a means of payment,” he said in an interview with Cnbc published yesterday on the Kremlin’s website. A surprising statement, given that recently the Russian authorities have repeatedly expressed themselves in a very critical, if not negative, way on this topic.
Then from a tweet from the US Securities and Exchange Commission (SEC): “Before investing in a fund that holds bitcoin futures, be sure to carefully weigh the potential risks and rewards,” the tweet read. Confirming, according to experts, what was reported by Bloomberg yesterday, which, citing informed sources, said the SEC is ready to approve the start of trading the first ETF on bitcoin futures next week.
Jeffrey Haley, an analyst at Oanda in the Asia Pacific region, confirmed to milanofinanza.it, “Bitcoin is on the rise because news has spread that the USA should approve two Bitcoin ETFs possibly as early as next week.” ‘,” adding that the next target is over $60,000 ($65,000). Ben Caslin, head of research and strategy at Asia-based crypto exchange Aax, told Reuters that Bitcoin’s rally above $59,000 is not arbitrary and that long-term investors have been piling on it for a while. “It is widely expected that the fourth quarter will see significant progress on the Bitcoin ETF in the US,” he said.
Several fund managers, including the VanEck Bitcoin Trust, ProShares, Invesco, Valkyrie and Galaxy Digital Funds, have requested that Bitcoin ETFs be launched in the United States. Bloomberg determined that ProShares and Invesco’s proposals are based on futures contracts and were submitted under mutual fund rules that, according to SEC President Gary Gensler, provide “significant protections for investors.”
While John Cunliffe, the Bank of England’s second-in-command, warned this week that the next global financial crisis could come from the crypto world, the regulatory framework must be changed as soon as possible to avoid this. Cunliffe compared the explosion in crypto-asset use, which in five years went from $16 billion to $2.3 trillion, to the boom in subprime mortgages, which reached $1.2 trillion at its peak in 2008. Also came a warning from MSCI: Companies that It constitutes the largest index in the world investing $7.1 trillion in cryptocurrencies.
Pending the official approval of the ETF, the market is shaking, “expecting an all-time new high for bitcoin. However, to expect that now, it would be crazy,” Simon Peters, crypto market analyst at eToro told milanofinanza.it. “The current bitcoin cycle looks similar to the 2013 cycle. Supply is under pressure and bitcoin is withdrawn from exchanges. A jump to an all-time high this month and/or early November will be in line with 2013,” Peters said.
In the past seven months, “HODling” behavior has dominated (HODL is a typo in the verb hold, which later became a symbol for those who avoid short-term speculation, but prefer to keep cryptocurrencies in their wallet longer, editor). According to Glassnode, more than 2.37 million BTC migrated from short-term to long-term holders during this time period. To give some context, about 166,000 BTC have been mined in the past seven months; This means that long-term holders of coins accumulated 12.7 times more coins than they were mined.
However, “Focusing on whether and when a new high will be reached is a short-sighted approach. Cryptocurrency investors should focus on the long-term benefits and use cases of the token, while focusing on short-term price movements. A risky approach for any person,” Peters noted. “The all-time high will be updated in the long term, while in the short term we may see some resistance at the $58,000-60,000 level and possibly a pullback before rebounding again.” (All rights reserved)