Today’s surge in Bitcoin prices may be a response to increased speculation that exchange-traded products may eventually be approved in the coming weeks.
According to CoinGecko’s data, the BTC price has risen by 7% in the past 24 hours and has soared by 32% in the past week. This bullish price movement for BTC may be a preemptive form for big bag holders when they expect the US Securities and Exchange Commission to approve futures ETFs.
On October 7, Eric Balchunas, Senior Analyst at Bloomberg Responded Exclamation from the founder and partner of Morgan Creek Digital, Anthony Pompgliano, Stating that if the ETF is approved in the fourth quarter, “things will go crazy.” Balciunas reiterated that he was 75% sure that approval was imminent.
“Although we [are] I believe that the Bitcoin futures ETF will be approved soon (for example, within two weeks), we [are] I’m not convinced that they will be as successful as physically supported ETFs. Nevertheless, a big step has been taken. “
In light of the comments of the US Securities and Exchange Commission boss Gary Gensler (Gary Gensler), futures products may be approved first, allowing institutional investors to access BTC and bet on its future price without actually holding any Bitcoin. Balchunas stated that he believes that the physical-backed ETF will not be approved soon, but said that it will eventually:
“It will happen physically at some point. The time is too unclear. Anyone’s guess. It may be months or years.”
For the two-week futures ETF approval forecast, he cited “a variety of technical and anecdotal reasons” and added that he was 75% confident.
The well-known analyst Alex Krüger also cited EFT approval hype as a driving factor for the current BTC price trend:
This is how the crypto market is now trading. The dominant narrative is the Bitcoin ETF. Whether you are disappointed or not, you can worry about it later. https://t.co/aIv3BFZqI4
-Alex Kruger (@krugermacro) October 6, 2021
He added, “By the time the US Securities and Exchange Commission announced the news, the price of the ETF was already over half.” Mike Bucella, general partner of the crypto venture capital firm Blocktower, also said that after analyzing the current market activity, he believed that “people It is preemptively running a futures-based BTC ETF”.
related: October Futures-based Bitcoin ETF gets “75% chance of approval”
Matthew Dibb, co-founder and COO of Stack Funds, responded to this sentimental comment, stating that “rumors of the BTC ETF decision later this month are stimulating further demand”, and then added that the rebound coincided with Proshares ETF approved October 18.
As Crypto Quant CEO Ki Young Ju observed, the whales must have been buying, and he noticed the $1.6 billion market order in just a few minutes on October 6.
Someone bought it worth $1.6B Bitcoin It only takes 5 minutes to pass a market order.
The short liquidation at the time seemed relatively small, such as $17 million.
This is more like a whale purchase than a cascading liquidation.https://t.co/dD3OsykiET pic.twitter.com/0NnvbmaYYm
-Ki Young Ju 주기영 (@ki_young_ju) October 6, 2021
In late September, Bloomberg Intelligence Commodity Strategist Mike McGlone It is predicted that the U.S. Securities and Exchange Commission will approve BTC futures products “Maybe before the end of October.”
On October 5th, McGraw speculated that the resistance of Bitcoin price at $50,000 was About to shift to long-term support In the fourth quarter.