Bitcoin (BTC) simply refuses to die this week as a dip below $60,000 barely lasts an hour and bears are burned yet again.After a fairly calm weeken
Bitcoin (BTC) simply refuses to die this week as a dip below $60,000 barely lasts an hour and bears are burned yet again.
After a fairly calm weekend, Sunday saw a typical drawdown before a dramatic resurgence took place for BTC/USD just an hour later.
With that, Bitcoin has preserved not only its bullish trajectory but has also sealed its highest weekly close ever — around $61,500.
As the market braces for a possible start of trading for the United States’ first Bitcoin exchange-traded funds (ETFs), volatility is all but guaranteed, say analysts.
Cointelegraph takes a look at five things to consider in the week that BTC/USD squares up to all-time highs and institutional access takes a historic leap forward.
Bitcoin gives less than an hour to “buy the dip”
Just when it seemed that the run to all-time highs had hit a stumbling block, Bitcoin surprised everyone yet again overnight.
After losing $60,000 late Sunday, bulls had no time for BTC price weakness, and before BTC/USD had even hit $59,000, they embarked on an aggressive buying spree.
Hours later, the pair was back above not only $60,000, but $62,000 — and has stayed there at the time of writing.
The episode did not even impact Bitcoin’s weekly close, which despite volatility still came in as the highest of all time — around $61,500.
“The historic Weekly Close now means BTC is well-positioned for further upside,” trader and analyst Rekt Capital summarized on Monday.
He added that the next phase of BTC price action will be “more volatile” than what has come before, in line with previous bull market years 2013 and 2017.
As various analysts celebrate the weekly close milestone, meanwhile, the upcoming U.S. market open could also provide excitement.
Monday could see the launch of the first-ever Bitcoin ETF products with the blessing of U.S. regulators, this coming as BTC/USD is less than $3,000 from new all-time highs.
On the topic of derivatives, funding rates across exchanges have also cooled since last week, providing relief for those concerned about unsustainable upside leading to a blow-off top.
ETFs are ‘go,’ but not for everyone
Love it or hate it by now, this week is all about the Bitcoin ETF.
As rumors began circulating about a U.S. regulatory green light late last week, Bitcoin price action heated up — and this week looks set to continue the trend.
After years of rejections, the Securities and Exchange Commission (SEC) is preparing to witness the launch of two ETF products both based on CME Group Bitcoin futures.
These precede a lengthy decision-making process which begins next month concerning physical Bitcoin ETFs — those with actual BTC as their underlying asset and which form the topic of real interest for analysts.
There is no guarantee that those traditional ETFs will get approved, and concerns already abound that the market may end up disappointed once more.
With multiple applications to be decided on, however, there remains six months for a breakthrough from the SEC.
Optimism that the tide will turn in the crypto industry’s favor continues this week, as Grayscale confirms that it will apply to convert its flagship Bitcoin fund product to an ETF.
stay tuned
— Barry Silbert (@BarrySilbert) October 17, 2021
Grayscale’s fund, the Grayscale Bitcoin Trust (GBTC), has been a talking point in itself in recent weeks, trading at an increasing discount to spot BTC amid fears that institutional clients are voting with their feet in the run-up to the ETF launch.
The former’s higher fees is one example of the competitive advantage debate, while some have noted that futures-based ETFs will not function as a suitable alternative by definition.
This chart shows why you’re better off buying #Bitcoin than Bitcoin Future ETF. For investors, new Bitcoin ETFs might be more costly than purchasing cryptocurrency directly. Bitcoin Future has underperformed by 30ppts since start of Bitcoin Future in 2017. https://t.co/1ZnVBJQlGa pic.twitter.com/oXrZ95Wsmg
— Holger Zschaepitz (@Schuldensuehner) October 17, 2021
“To begin with, most institutional players have direct access to CME futures. Typically, the main reason they would choose to trade ETFs instead of futures would be to avoid tracking error (against spot price) from futures roll costs or price deviations from to contango or backwardation,” crypto trading firm QCP Capital added in a circular to Telegram channel subscribers Friday.
“As such, having the ETF based on CME futures defeats the fundamental advantage of ETFs; to track spot price as closely as possible.”
Difficulty set for 7th straight increase
Bitcoin network fundamentals continue to impress this week, and difficulty is leading the pack.
What is arguably Bitcoin’s most essential feature is going from strength to strength, and on Tuesday is set to seal a seventh consecutive…
cointelegraph.com