Crypto Market Sees Green as Ethereum Futures ETF Launch Approaches
The crypto market is experiencing a surge in prices as investors eagerly await the launch of the Ethereum futures exchange-traded fund (ETF). Bitcoin and Ethereum have both seen impressive price increases at the start of October. Bitcoin has broken through $28,000 and is currently trading around $27,990, up 3.3% in the last 24 hours. Meanwhile, Ethereum’s price surged from $1,595 to $1,750 before settling around $1,723.
Bull Run or Bull Trap?
This sudden rally is attributed to the anticipation surrounding the first Ethereum futures ETF product set to launch this month. Valkyrie is expected to be the first to offer the futures ETF, and other companies such as VanEck, Bitwise, ProShares, Kelly ETFs, and Vol Shares have reportedly received approval for their own Ethereum futures ETFs. Additionally, Bitcoin spot ETFs are also in the spotlight.
The SEC has delayed a decision on Bitcoin spot ETFs multiple times due to concerns about market manipulation and investor protection. However, there is increasing pressure for a Bitcoin spot ETF approval in early 2024.
Altcoins are also experiencing gains during this bullish period. Solana (SOL) saw a surge of 12.05%, THORChain (RUNE) increased by 12.35%, and Polygon (MATIC) rose by 5.64%. Other top altcoins like Cardano (ADA) and Avalanche (AVAX) also recorded gains of 1% to 3%.
With this sudden return of bullish momentum, “Uptober” has become a trending keyword among crypto enthusiasts. Historically, cryptocurrencies have often rallied in October.
Short Sellers Face Liquidation
The unexpected price movement has resulted in gains for spot and long positions but has been detrimental to short sellers. Within two hours, approximately $70 million worth of short positions were liquidated, with BTC shorts accounting for nearly $36 million and ETH shorts accounting for $23 million.
On-chain analytics firm Santiment predicts that the Bitcoin bull run may continue in October. Bitcoin whales, who own between 10 to 10,000 BTC, have accumulated their highest holdings in 2023, totaling 13.03 million BTC. These whales have also been quietly buying Tether (USDT) over the past six weeks, indicating their confidence in Bitcoin’s long-term prospects.
What to Expect this October?
In October, two significant macro events will impact the market: the U.S. unemployment rate report on October 6 and CPI reports on October 1. These data provide insights into the economy’s health and inflation levels, which are crucial factors considered by the Federal Reserve when determining interest rates.
While the Fed paused its interest rate hikes in September, experts believe this pause is temporary. They anticipate that the Federal Reserve will resume raising interest rates, possibly as early as November or December. This expectation stems from the Fed’s efforts to control and reduce inflation, which has surpassed its desired 2% target.
Although the crypto market may be affected by the Fed’s decision, its impact is expected to be minor. Analysts believe that the broader economic outlook will play a more significant role in shaping the direction of the crypto market.
Hot Take: Ethereum Futures ETF Launch Sparks Green Surge in Crypto Market
The launch of the Ethereum futures exchange-traded fund (ETF) has ignited a surge in prices across the crypto market. Bitcoin and Ethereum have experienced significant price increases, with altcoins also seeing gains. The approval of Ethereum futures ETFs and the anticipation surrounding Bitcoin spot ETFs have contributed to this bullish momentum.
While short sellers have faced liquidation, spot and long positions have benefited. The crypto market is now eagerly watching for further developments in October, including macro events such as the U.S. unemployment rate report and CPI reports, which may impact the market. Overall, the market’s direction will likely be influenced by both regulatory decisions and broader economic factors.
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