While it’s
too early to talk about a speculative cryptocurrency rally like the ones
Bitcoin (BTC) has historically offered, something is definitely going on. Just
yesterday (Monday), the price of the oldest cryptocurrency surged by 15%,
testing its highest levels since May 2022, or in 17 months.
Along with
the rising price, investor expectations and dreams are also soaring, with some
already mentally cashing in above-average profits. The fear-of-missing-out
(FOMO) sentiment is also making a definitive comeback in the bull market.
During
Tuesday’s Asian trading session, Bitcoin momentarily tested the $35,200 level,
the highest this year and the highest since May last year. Although the price
has slightly retreated since then, Bitcoin still remains above the $34,000
level, breaking out of the consolidation it had been in for over a year.
Moreover,
technical indicators suggest that bulls are in control for the first time in a
while. Not only has Bitcoin’s price seen a significant increase, but its
“dominance,” or total share in the market capitalization of all
digital assets, has also risen. On Tuesday, it reached 52%, the highest since
April 2021.
The price of Bitcoin (in blue) and market dominance (in orange). Source: Tradingview.com.
Meanwhile,
trading volumes exploded, reaching nearly $30 billion in 24 hours, and Bitcoin
futures funding rates hit record highs, indicating panic buying from investors
wanting to get a piece of the action. The full-blown FOMO has returned to the
markets.
Even though the Relative Strength Index (RSI) indicates that Bitcoin is “significantly overvalued,” Twitter is filled with posts competing in forecasts about how far the cryptocurrency’s price will go.
Bitcoin 45,000 – FOMO is hitting the Market
👇 1/12 The Bitcoin futures funding rate is exceptionally high, indicating that many traders are panic buying at current levels – FOMO is back. Bitcoin dominance has reached 52.1%, and volumes are exploding as Bitcoin trades $29bn… pic.twitter.com/CKtkAPEhhk
— DeFi on Target (@DeFiOnTarget) October 24, 2023
“The
current optimism surrounding the leading cryptocurrency can be largely
attributed to insights provided by a Morgan Stanley report, suggesting that the
so-called ‘crypto winter,’ which has concerned investors, might be approaching
its end,” commented Walid Koudmani, the Chief Market Analyst at XTB.
While
Koudmani is likely correct, it’s not the only reason for the gains.
Bitcoin ETF Reignites
Investor Imagination
We all
remember how the news that BlackRock would apply to create the first spot
Bitcoin ETF triggered euphoria in the cryptocurrency markets just a few months
ago. Now, speculation about the imminent approval of this financial instrument
has once again captured investors’ imagination.
BlackRock
has taken another step toward launching a spot ETF product and has begun the
“seeding” process. As Eric Balchunas from Bloomberg admitted, this is
usually a good sign that brings the ETF closer to launch.
Note: Seeding is typically not a lot of money just enough to get ETF going. So I wouldn’t read this as ‘omg Blackrock is buying a ton of bitcoin’ at all but more the fact they doing it and disclosing it shows another step in the process of launching.
— Eric Balchunas (@EricBalchunas) October 23, 2023
Additionally,
the planned BlackRock iShares Bitcoin Trust has been listed on the Depository
Trust & Clearing Corporation (DTCC), which clears NASDAQ trades. The
instrument will be available under the symbol IBTC.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
Bitcoin to Become a $900
Billion Market
The news
has gone viral across the broad market of digital assets, influencing the price
of Ethereum (ETH), the second-largest cryptocurrency by market capitalization,
to reach its highest levels since August. One ETH is currently trading hands
for over $1,800. In after-hours trading, shares of cryptocurrency companies like
Coinbase and MicroStrategy are also seeing strong gains. Additionally, the
stock prices of cryptocurrency miners have shot up; for example, Hut 8 has
increased by over 12%.
“The
total cryptoasset market will grow by $1 trillion if the bitcoin spot ETF gets
approval, data analytics firm CryptoQuant has claimed,” eToro commented in
today’s note. “The firm has estimated that if the issuers that have
applied to list bitcoin ETFs put just 1% of their Assets Under Management into
the ETF, circa $155 billion could enter the market.”
This would
elevate Bitcoin’s market capitalization by nearly one-third, pushing it to a
valuation back to $900 billion.
While it’s
too early to talk about a speculative cryptocurrency rally like the ones
Bitcoin (BTC) has historically offered, something is definitely going on. Just
yesterday (Monday), the price of the oldest cryptocurrency surged by 15%,
testing its highest levels since May 2022, or in 17 months.
Along with
the rising price, investor expectations and dreams are also soaring, with some
already mentally cashing in above-average profits. The fear-of-missing-out
(FOMO) sentiment is also making a definitive comeback in the bull market.
During
Tuesday’s Asian trading session, Bitcoin momentarily tested the $35,200 level,
the highest this year and the highest since May last year. Although the price
has slightly retreated since then, Bitcoin still remains above the $34,000
level, breaking out of the consolidation it had been in for over a year.
Moreover,
technical indicators suggest that bulls are in control for the first time in a
while. Not only has Bitcoin’s price seen a significant increase, but its
“dominance,” or total share in the market capitalization of all
digital assets, has also risen. On Tuesday, it reached 52%, the highest since
April 2021.
The price of Bitcoin (in blue) and market dominance (in orange). Source: Tradingview.com.
Meanwhile,
trading volumes exploded, reaching nearly $30 billion in 24 hours, and Bitcoin
futures funding rates hit record highs, indicating panic buying from investors
wanting to get a piece of the action. The full-blown FOMO has returned to the
markets.
Even though the Relative Strength Index (RSI) indicates that Bitcoin is “significantly overvalued,” Twitter is filled with posts competing in forecasts about how far the cryptocurrency’s price will go.
Bitcoin 45,000 – FOMO is hitting the Market
👇 1/12 The Bitcoin futures funding rate is exceptionally high, indicating that many traders are panic buying at current levels – FOMO is back. Bitcoin dominance has reached 52.1%, and volumes are exploding as Bitcoin trades $29bn… pic.twitter.com/CKtkAPEhhk
— DeFi on Target (@DeFiOnTarget) October 24, 2023
“The
current optimism surrounding the leading cryptocurrency can be largely
attributed to insights provided by a Morgan Stanley report, suggesting that the
so-called ‘crypto winter,’ which has concerned investors, might be approaching
its end,” commented Walid Koudmani, the Chief Market Analyst at XTB.
While
Koudmani is likely correct, it’s not the only reason for the gains.
Bitcoin ETF Reignites
Investor Imagination
We all
remember how the news that BlackRock would apply to create the first spot
Bitcoin ETF triggered euphoria in the cryptocurrency markets just a few months
ago. Now, speculation about the imminent approval of this financial instrument
has once again captured investors’ imagination.
BlackRock
has taken another step toward launching a spot ETF product and has begun the
“seeding” process. As Eric Balchunas from Bloomberg admitted, this is
usually a good sign that brings the ETF closer to launch.
Note: Seeding is typically not a lot of money just enough to get ETF going. So I wouldn’t read this as ‘omg Blackrock is buying a ton of bitcoin’ at all but more the fact they doing it and disclosing it shows another step in the process of launching.
— Eric Balchunas (@EricBalchunas) October 23, 2023
Additionally,
the planned BlackRock iShares Bitcoin Trust has been listed on the Depository
Trust & Clearing Corporation (DTCC), which clears NASDAQ trades. The
instrument will be available under the symbol IBTC.
The iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades). And the ticker will be $IBTC. Again all part of the process of bringing ETF to market.. h/t @martypartymusic pic.twitter.com/8PQP3h2yW0
— Eric Balchunas (@EricBalchunas) October 23, 2023
Bitcoin to Become a $900
Billion Market
The news
has gone viral across the broad market of digital assets, influencing the price
of Ethereum (ETH), the second-largest cryptocurrency by market capitalization,
to reach its highest levels since August. One ETH is currently trading hands
for over $1,800. In after-hours trading, shares of cryptocurrency companies like
Coinbase and MicroStrategy are also seeing strong gains. Additionally, the
stock prices of cryptocurrency miners have shot up; for example, Hut 8 has
increased by over 12%.
“The
total cryptoasset market will grow by $1 trillion if the bitcoin spot ETF gets
approval, data analytics firm CryptoQuant has claimed,” eToro commented in
today’s note. “The firm has estimated that if the issuers that have
applied to list bitcoin ETFs put just 1% of their Assets Under Management into
the ETF, circa $155 billion could enter the market.”
This would
elevate Bitcoin’s market capitalization by nearly one-third, pushing it to a
valuation back to $900 billion.
