The price of bitcoin soared past the $55K handle on Wednesday for the first time in four months giving proponents hope the crypto bull run has been re-ignited. Some speculate that a bitcoin exchange traded fund (ETF), will soon be approved. Others believe bitcoin will outperform all other crypto assets in this month.
ETF Analyst Eric Balchunas discusses Bitcoin Exchange Traded Fund Approval Odds
While 13 digital currencies outperformed bitcoin (BTC) this past week, BTC has been a top performer gathering 34.2% over the last seven days. On Wednesday, statistics indicate that BTC gained more than 7% in value and tapped a daily high of $55,800.
One of the main reasons for bitcoin’s recent price rise is the rumor about an exchange-traded funds (ETF) being approved by the U.S. Securities and Exchange Commission. Eric Balchunas, Bloomberg ETF analyst, shared his thoughts on the possibility and a screenshot of the odds. Balchunas also spoke out about Gary Gensler (SEC chairman), and how he likes futures versions of bitcoin ETFs.
“Yes, the SEC has kicked can on bitcoin ETF approval,” Balchunas tweeted. “BUT that is for the physically-backed ones under ’33 Act. The futures ETFs filed under the ’40 Act (which Genz loves) are very much alive and likely on schedule (we think 75% chance approved in Oct).”
The odds of Balchunas, an ETF analyst, are shown below.
Titan crypto adds more weight behind Bitcoin
In addition to the odds from the ETF analyst, the mobile hedge fund and investment firm backed by a16z, Kevin Durant, Ashton Kutcher, and Will Smith, Titan, revealed that the actively managed crypto fund for Titan clients will be changing positions in the space to put more weight behind bitcoin.
” We’ve reduced our other positions in order to support bitcoin. We believe it’s bitcoin’s time to shine,” Titan said on Wednesday evening (EST). “October has started with significant gains after a difficult September in crypto markets. Some were surprised that bitcoin held $40K through September, despite an onslaught of bad news.” Titan added:
But — as noted in our previous updates — on-chain data continued to show bullish broader accumulation trends by institutional investors and whales, who seemed wholly unfazed in spite of heightened volatility. We’ve now seen bitcoin spike as high as ~$55K this week, but we see more room to run.
Titan cites four reasons why Titan researchers believe that bitcoin’s value will “exponentially increase in October while other crypto assets might plateau.”
- “We believe bitcoin ETFs are coming: Approval of U.S.-based bitcoin futures ETFs could come as soon as this month, with promising comments from SEC Chair Gary Gensler.”
- “Bitcoin is playing catchup: We’ve seen altcoins make new all-time highs over the last month, while bitcoin has consolidated between $40-50K. We believe Bitcoin is about to catch up to the pack.”
- “Taking a pause from altcoin season: The Altcoin Season Index shows that altcoin season may have already reached a local peak, with the market returning to bitcoin season in the short term.”
- “Institutional flows reversal: After suffering its longest run of institutional outflows, bitcoin has started to see strong inflows over the last two weeks. This is due to institutional investors’ growing confidence in bitcoin. Once an institution buys bitcoin, you can generally expect them to HODL.”
Crypto Derivatives Exchange CEO – ‘Money to Rotate into Bitcoin From Alts Going Forward ‘
The crypto derivatives exchange Delta Exchange and its CEO Pankaj Balani share a similar view that BTC is expected to outperform other crypto assets. Balani stated that bitcoin has risen after the September seasonal correction. This was in a note to Bitcoin.com News. The price action is very bullish due to the fact that bitcoin has strength despite global macro weakness. “Bitcoin has also taken in all of the negative news from China over the past weeks, which is a very encouraging sign.” Balani said:
There has been fresh spot buying activity in bitcoin and looking at the price action we expect to see a fresh ATH in the coming weeks. We expect bitcoin to outperform altcoins, and that the money will continue to flow into bitcoin from altcoins.
What do you think about the prediction that the month of October will see bitcoin outperform other crypto assets? Are you positive that a bitcoin ETF would be approved?
Please comment below.
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Image Credits: Shutterstock, Pixabay, Wiki Commons, Titan, Bloomberg ETF analyst Eric Balchunas, Twitter,
Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.
Crypto Market Turning Point –
Roughly six months ago, bitcoin and a number of digital assets reached all-time highs and the crypto economy crested above $3 trillion in value. Today is a different story as a great majority of cryptocurrencies are down between 57% to over 80% against the U.S. dollar.
While Cryptos Are Down From the ATHs, 2020 Holders Are Still in the Green
On November 9, 2021, or 196 days ago, the crypto economy was valued at over $3 trillion, and today it’s worth roughly 56% less at $1. 31 trillion. Six months ago, bitcoin (BTC) touched an all-time high (ATH) at $69K per unit and today, it’s down more than 57% in USD value.
The second leading asset, ethereum (ETH), has lost 59. 85% after reaching $4,847. 57 per ether six months ago. The fourth-largest crypto asset BNB is down 52. 65% after tapping $689 per unit. XRP is not even close to its January 07, 2018 ATH the digital asset tapped four years ago when it reached $3. 40 per coin. XRP today is down more than 87% against the U.S. dollar from that point in time.
The tenth-largest crypto asset today, dogecoin (DOGE) is down 88.8% from the meme coin’s ATH a year ago. While prices are down since 2021’s high, crypto investors that purchased digital assets in 2020 have seen it their cryptocurrencies rise. For instance, the price of bitcoin (BTC) since 2020 is up 303. 28% and ethereum (ETH) is up 465.70%.
The same is true for many of today’s top coins. Binance’s BNB token has jumped 173. 53% in two years and cardano (ADA) is up 443.83%. Gains are even bigger for those who purchased crypto assets in 2017 as bitcoin (BTC) is up 1,294. 85% since that year. The second leading crypto asset ethereum (ETH) is up 8,985. 15% since 2017 against the U.S. dollar.
XRP holders have seen the most gains since 2017 as XRP has skyrocketed in value by 31,346. 47% during the last four years. 2017 was a bullish time for crypto investors as BTC hit an all-time price high that year at $20K per unit and 2021 was similar in terms of bullish price values.
Crypto’s Strong Correlation With Stocks, 289-Day Bear Runs, and Further Capitulation
Market strategists believe that most bear markets last less than 9.5 months. Moreover, in recent times cryptocurrencies have been correlated with equities markets and more specifically stock indexes like Nasdaq 100 and the S&P 500. This could indicate that the crypto bear market will continue until the stock market bear runs are over.
Bank of America strategists recently detailed that the S&P 500 has recorded a total of 19 bear market cycles. The average duration for each cycle was roughly 289 days and the S&P 500’s average bottom was 37.3% lower than the ATH.
If cryptocurrencies follow the same pattern, it could mean that bearish sentiment could continue for three more months. This is assuming history repeats itself and digital assets follow the current correlation to equities. Unfortunately for crypto investors, S&P 500’s average drop of 37.3% is nothing like the lows the crypto economy has seen during extreme capitulation. Three bitcoin (BTC) bottoms have been more than 80% lower than the ATHs recorded during the bull cycle.
While the top ten crypto assets are down 57% to over 80% already, prices could go much lower. An 80% drawdown from BTC‘s $69K high would be $13,800 per unit and an 80% cut in ether’s ATH value would result in a price of $970.
Currently, crypto assets like BTC and ETH are seemingly at a turning point that will take the value one of three ways. The price of bitcoin could stabilize in this area for quite some time. However, it could rise back into a bullish scenario or drop even further, resulting in more capitulation.
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What do you think about crypto assets being down 57% to over 80% lower than their price highs? Please comment below to let us know your thoughts on this topic.
Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or related to the use or reliance of any content, goods, or services in this article.
Bitcoin, Technical Analysis: Crypto Bears Hold BTC Below $30,000
Bitcoin was lower for a second consecutive session, as bears maintained recent pressure on crypto markets. This pressure also saw ETH move lower, as it continued to trade under $2,000 during hump-day.
The world’s largest cryptocurrency once again traded below $30,000, as bears continue to maintain a chokehold on prices.
As of writing, BTC/USD is trading at $29,502. 71, which is roughly 1% higher than yesterday’s low of $28,786.59.
Wednesday’s movement in bitcoin is ultimately a continuation of yesterday’s move, with prices now consolidating at its current range.
This range sees prices hovering at a floor of $28,800, with a resistance level of $30,500, which has not been truly broken since early May.
In addition to the price ceiling, relative strength is also tracking at a resistance point of its own, which is under 40.
Until we see a move past this point, then we will likely see a continuation of current price consolidation.
ETH moved to a lower low during today’s session, as its own price continues to trade under a key point of $2,000.
The world’s second largest cryptocurrency dropped below its support level on Tuesday, hitting an intraday low of $1,920. 69 in the process.
This saw ETH/USD about $30 below its support level at $1,950, which has mostly held firm during this latest round of bearish activity.
Overall, ethereum is now in its second week trading at its current floor. After the massive declines experienced in April and May, consolidation was to expect.
Looking at the chart, you can see that the 10-day moving average in red is moving sideways, which is a strong indication of a future change in momentum.
Traders will now wait to see if bulls will use this signal as an indicator, prior to re-entering the market.
Will ETH‘s $1,950 support level be broken this week? Please leave your comments below.
Eliman has a unique perspective on market analysis, having been a broker director, retail trading educator, and market commentator for Crypto, Stocks, and FX.
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Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage caused by or alleged to have been caused by the use or reliance of any content, goods, or services mentioned here.
Will Terra recover? Expert analysis, price prediction and where to purchase Terra
The price of Terra’s token LUNA was as $100 per 1 LUNA in April, but it crashed to near zero last week. TerraUSD (UST), Terra’s algorithmic stablecoin lost its peg against the US dollar. This occurred against the backdrop of a significant crypto market decline, which sent Bitcoin’s price down by over 20%. Now that…
The price of Terra’s token LUNA was as $100 per 1 LUNA in April, but it crashed to near zero last week. TerraUSD (UST), Terra’s algorithmic stablecoin lost its peg against the US dollar.
This occurred against the backdrop of a significant crypto market decline, which sent Bitcoin’s price down by over 20%.
Now that Terra has lost 99% of its value, is there any hope for recovery? You’ll find out more about the efforts of its founders to get it running again.
If you’re attracted by unique features and want information on where and how to purchase Terra, this guide will help you.
Top Places to Buy Terra Now
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Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Terra Luna was a crypto project that Terraform Labs, an in-house tech company, created. Its goal was to promote crypto adoption by creating a set decentralized stablecoins that can be used to perform DeFi transactions.
Terra reanimation action plan
Do Kwon, the founder of
Terra has a plan for reviving the coin. To bring TerraUSD back to $1, the first part of the plan includes a massive burn of TerraUSD (USTUSD).
They plan to burn more than 371 million UST on the Ethereum Mainnet and any UST left in the Terra community pool.
The second part is to stake 240 million LUNA tokens to stop whales from seizing control and to stabilize network governance.
Developers also stopped Terra’s blockchain and stopped all pending transactions. This was done to prevent people buying LUNA at an extremely low price.
Should Terra be bought today?
Given the difficulty of predicting cryptocurrency prices accurately, it’s important to conduct a thorough market analysis before making any financial decisions. Do not invest more than what you can afford to lose.
Terra price prediction
Many investors are pessimistic about Terra’s prospects. The Motley Fool says it is best to avoid the project, despite its low price.
Digital coin price and forecast see little hope for LUNA. They predict an end-of year price of less than 1 cent bzw. 0. 6 cents.
However, experts disagree. Investing Cube believes that LUNA can recover. LUNA will gain if the stablecoin is revalued to $1.
Wallet Investor did not adjust its bullish prediction of LUNA before the crash. They predict 1 LUNA will trade for $151 in May 2023. Finally, Gov Capital anticipates LUNA to be worth $108 a year from now.
Terra on social media
— Watcher.Guru (@WatcherGuru) May 15, 2022
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