Can Bitcoin ETF rumors keep BTC rallying?
The Bitcoin price is on the verge of reaching new yearly highs and potentially hitting an all-time high (ATH) soon. Traders are optimistic about BTC’s long-term prospects, as reflected in their continued long positions. Recent increases in trading volume suggest that volatility could be on the horizon. There is a possibility that Bitcoin could surpass $40,000 by the end of October or early November.
BTC is currently hovering just below $36,000, facing a challenge from the 38.2% Fibonacci ratios. The Relative Strength Index (RSI) has crossed 70, indicating an “overbought” condition and signaling the need for caution due to potential rapid rallies. After reaching a high of $35,000, the price has consolidated around $34,500.
But What’s driving the BTC Rally? How Long it will Stay?
The recent surge in the market is driven by expectations of approval for US exchange-traded funds (ETFs) directly investing in Bitcoin. However, Bloomberg analysts predict a potential “sell-the-news” event after approval, suggesting that the markets may have already priced it in. Market participants are cautious and anticipate a potential sell-off if the ETFs are approved.
Despite Bitcoin’s rally, global stock markets are facing challenges such as rising long-term Treasury yields and geopolitical uncertainty. Bitcoin’s unique value proposition as a digital store of wealth and inflation hedge has led to its outperformance compared to traditional assets. However, it’s important to note that regulatory approval does not guarantee lasting price increases.
BTC to Touch $40K by Year End?
Deribit, the largest cryptocurrency options exchange, has seen a significant increase in bullish bets on Bitcoin. Many traders are accumulating positions speculating on a price rise to $40,000 by the end of the year. This projection represents a 16% jump from current levels and demonstrates traders’ confidence in Bitcoin’s short-term potential.
In Comparison with Gold
Bitcoin’s recent rally is causing a shift in focus away from Gold, indicating a changing dynamic between the two assets. Bloomberg’s Senior Macro Strategist, Mike McGlone, suggests that the traditional valuation metric of 10x crypto-to-gold may soon change. As Bitcoin gains more mainstream acceptance, the approval of US spot Bitcoin ETFs is expected to solidify its position further and potentially challenge Gold’s historical dominance as a store of value.
Do you think Bitcoin can reach $42,000 with the launch of ETFs? Or will the “sell-the-news” event slow down its growth?
Hot Take: Bitcoin ETF Approval Could Lead to Profit-Taking
The anticipation of US exchange-traded funds (ETFs) directly investing in Bitcoin gaining approval has fueled the recent rally in BTC. However, analysts predict a potential “sell-the-news” event following approval, which could lead to profit-taking among investors. Despite Bitcoin’s strong performance and unique value proposition, regulatory approval does not guarantee sustained price increases. Traders are accumulating positions speculating on a price rise to $40,000 by year-end, but it remains to be seen how the market will react once ETFs are approved. Bitcoin’s rally has also shifted attention away from Gold, signaling a transformative shift in the relationship between the two assets.
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