Bitcoin
BTC$70 736.91

2.78%

Ethereum
ETH$3 562.64

1.50%

Tether
USDT$1.000352

0.08%

Binance Coin
BNB$581.39

2.02%

Solana
SOL$187.83

1.55%

XRP
XRP$0.628371

2.46%

Bitcoin ETF Approval Unleashes The Crypto Bull


October 2021

In the growth and development of Bitcoin towards a mainstream financial asset, the desire to have a Bitcoin ETF has been high on the wish list. Many companies have put forward proposals only for the SEC to strike them down over fears of market manipulation and other issues with the burgeoning space. However, it appears that the SEC has finally given in to the desires of the majority with a rumored ETF on its way. This is hugely bullish news for the cryptocurrency space, and Bitcoin in particular, and the rumors have sent the market price skyrocketing. 

Bitcoin has crossed over the $60,000 mark and neared $63,000 off of this news, which is just short of its all-time high of $64,800. The cryptocurrency has been on a relatively strong rise in the last three months, having doubled in value since the end of July. Many now feel that the ETF news could be the catalyst for a new all-time high, which was last seen in mid-April this year. 

The ETF news is also positive as this tool would be great for institutional interest in Bitcoin. Institutions still look to be playing a major part in the markets currently and are in a period of accumulation. The approval of an ETF would empower institutions further to make a bigger impact in the market leading to higher prices, potentially.  In spite of the bullish outlook for Oil, it pales in comparison with the cryptocurrency market, which is even more bullish. A rumor of the first BTC ETF being approved by the US SEC initially sent front-runners buying up BTC in anticipation mid-week, while the eventual approval announced late Friday afternoon saw the next wave of buyers send the price of BTC firmly above $60,000 for the first time since April.

Institutions Piling in On BTC Ahead of Rumoured ETF Approval

According to data, the recent surge in the price of BTC appears to be led by institutional investors, with OTC brokers, funds and family offices taking the lead in the buying category, while crypto exchanges which typically service retail investors are skewed on the selling side. Crypto exchanges, which have millions of retail clients, were skewed 57.4% to the sell-side from October 3 to October 10, while OTC desks were buyers of crypto, skewed 54.8%.

This could show that the current run-up in BTC price is caused by institutional buyers, which may have a longer-term view than the average retail investor. 

In another sign that shows the recent bullish move in BTC is driven by institutions, last week saw a spike up in the Futures Market price of BTC on the CME Exchange. Since the middle of last week, as the price of BTC increased, the basis of BTC had started to increase sharply, meaning the BTC futures on the CME started to trade at a larger premium to that offered by other crypto exchanges. This could mean that US institutional traders using the CME are the ones bidding up the price of BTC recently. Optimism surrounding the SEC’s approval of a futures-led BTC ETF could be a key reason for the aggression by institutions. Similarly showing increased institutional interest, the CME Open Interest also surged to an ATH. 

This information shows that just before news broke that the first Futures-based BTC ETF could be approved for trading in the US, there has been a surge in institutional investors taking positions on the CME in anticipation. 

BTC Active Entities Increasing

BTC in the spot market has also witnessed an increase in unique users.  The BTC Active Entities Count has been increasing. Ever since falling from the beginning of this year, the number of active entities using the BTC blockchain has started on an uptrend in July, with a surge in entities since October. The last time the number of active entities saw such a turnaround was from May to July of last year, which preceded the beginning of the bull run. Between the months of October to January, last year saw a big spike in the number of active entities, which coincided with a large surge in the price of BTC. Could it be the same this time around? 

Coinbase NFT Project Helps ETH Breakout

Coinbase’s introduction of an NFT marketplace sent positive vibes across smart contract blockchains and in particular to ETH as NFTs have been the highest ETH gas guzzlers on the ETH blockchain, as can be seen in Opensea’s lead over even popular DeFi projects like Uniswap. With the NFT Marketplace to be launched on ETH, bullish sentiment took the price of ETH breaking out from consolidation, soaring above $3,600 convincingly. The more gas is being paid as a fee, the more ETH will be burned, reducing the circulating supply of ETH. Thus, an introduction of an NFT marketplace by the largest US crypto exchange could drive a big increase in usage, further reducing the supply of ETH as more ETH will be burned. 

Coincidentally, after the NFT news from Coinbase that brought about positivity to ETH’s price, 400,000 units of ETH were withdrawn from Coinbase. This could mean that a whale from the USA had bought and removed around $1.5 billion worth of ETH from Coinbase. As the sum is a rather big amount, could this whale move be another large corporation that is adding ETH to its balance sheet?

Following the large withdrawal from Coinbase, the exchange reserves of ETH have dropped to a new all-time low of only 18 million units.  This could intensify the ETH supply crunch as we head towards the implementation of ETH 2.0. Besides the ETF approval, other notable bullish news for crypto includes Russia, which is said to be open to accepting cryptocurrencies as a legitimate form of payment. However, Russian President Putin acknowledges that it is still too early to consider using cryptocurrencies in the trading of energy resources.

With the newly approved ProShares BTC ETF to start trading today, eyes will be on how this will impact BTC price and as such, market direction this week could hinge on the performance of the ETF. If the response is positive and the price of BTC bids higher, then we could be expecting BTC to hit ATH very soon.

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 77.6% 44 $70 736.91 2.78% 8.31% $1 391 178 414 200 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 75.6% 48 $3 562.64 1.50% 2.46% $427 772 969 398 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 91.2% 1 $1.000352 0.08% 0.04% $104 490 946 646 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 62% 80 $581.39 2.02% 4.85% $86 939 551 284 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 56% 89 $187.83 1.55% 4.77% $83 450 036 018 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 80% 32 $0.628371 2.46% -1.77% $34 487 663 799 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 90.4% 2 $1.000008 -0.02% -0.02% $32 295 051 608 USDC 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 67.6% 68 $0.223194 20.12% 46.03% $32 063 455 196 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 68.4% 67 $0.650387 0.01% 2.61% $23 142 053 918 ADA 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 56.4% 88 $54.77 1.11% 1.30% $20 670 511 693 AVAX 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 56.4% 94 $0.000032 6.29% 18.17% $18 866 682 481 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 58.8% 88 $4.88 -2.51% 19.56% $16 927 337 697 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 72% 52 $9.53 0.98% 2.89% $13 600 267 897 DOT 7 days price change
14 Bitcoin Cash (BCH) BCH Bitcoin Cash predictions 69.6% 60 $576.75 6.65% 38.66% $11 351 495 383 BCH 7 days price change
15 Chainlink (LINK) LINK Chainlink predictions 74.4% 42 $19.16 -0.94% 2.77% $11 250 792 534 LINK 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.