Relevance up to 05:00 2021-10-22 UTC–4
This week has already entered the history of the first cryptocurrency and can get even better. Trading volumes for the first ETF fund in the United States are breaking all records, and the number of institutional investors continues to grow. Meanwhile, Bitcoin managed to strongly break through the absolute maximum line, setting a new record near the $67,000 mark. Today, the optimism in the BTC market may increase many times due to several important announcements that already affect the price movement.
First, we are talking about the American regulator, which approved two more applications to launch an ETF fund on Bitcoin futures. The SEC also gave a go signal for the creation of exchange institutions at the request of Valkyrie Investment and VanEck. Initially, the companies applied to launch a full-fledged bitcoin fund, but after the positive decision of the commission regarding BTC futures, they reformatted the application. Given the record trading volumes for the first day, more excitement is expected among long-term investors. In addition, the launch of the funds coincided with numerous statements about an increase in the rate of inflation, and many entrepreneurs began to speak positively about BTC as a means of hedging risks. For example, billionaire Carl Icahn called coin an excellent means of protection against inflation, and JPMorgan and Goldman Sachs experts agree with him.
All this caused the growth of the institutional audience by 2% in less than one month. With this in mind, we should expect a new period of broad upward movement after a short consolidation cycle. It is expected that the SEC will approve another application for Bitcoin futures tomorrow. The market was very enthusiastic about the launch of funds, due to which the capitalization of the first coin increased to $1.2 trillion, which is an absolute record. It can be recalled that the regulator may approve 5 more applications for the launch of ETF funds for future, and therefore, it is worth carefully monitoring the likely dates of approval of applications and adjusting your longs to the beginning of impulse euphoria in the bitcoin market.
Concluding the topic of ETFs, a problem should also be noted. SEC Chairman Gary Gensler ambiguously spoke about the possible launch of a financial institution on the spot market. The thing is that when approving such an application, the regulator loses control over such a large sector, while the futures market is controlled by a friendly division of the commission. In addition, the CEO of the regulator reiterated that Bitcoin futures are subject to the law on investment companies of the 40th year, unlike a fund on the spot market. All this confirms the theory that the state regulatory body does not plan to launch a full-fledged ETF fund, and the futures analog is the lesser of the evils for the commission.
Despite this, even the SEC could not expect such a rush from the start of the operation of the futures fund. Institutional investors continue to arrive at the BTC market, and experienced players adhere to the strategy. After reports on the cosmic profit on the results of investments in Bitcoin, Tesla’s representatives announced the preservation of current balances in the spot market. This can be seen in the company’s financial statements and suggests that the carmaker is becoming a full-fledged holder of the main crypto asset. A similar example was followed by all the largest holders of the coin, and many of them continue to accumulate volumes, counting on further growth of the asset.
Meanwhile, BTC/USD pair is confidently moving upward. Bitcoin’s price has risen by 4% over the past day, and the increase over the week has increased to 15%. The cryptocurrency has also consolidated above the level of $ 66,000 and remains bullish.
On the daily chart, Bitcoin has formed three bullish candles in a row, which indicates a steady growth of acquired and retained volumes. The digital asset still looks very strong on the technical charts: the MACD received an additional local bullish impulse and continued to rise sharply. At the same time, the stochastic oscillator has formed a bullish intersection and continues to grow, following the relative strength index. All the main metrics point to further growth of the cryptocurrency after a short period of consolidation. The asset met increased resistance in the area of $66,000-$67,000, and then, with an increase in selling pressure, a local rebound to the support zone at $60,000 may occur. Currently, this level can be considered an excellent entry point in BTC, which can already reach $90,000 this month.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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