On October 14th, the bulls flexed their muscles and showed their intention to push the price of Bitcoin (BTC) closer to its all-time high of $65,900. One of the reasons for this move is the constant talk about the possibility of approving an Exchange Traded Fund (ETF) until the end of October.
On October 14th, the bulls flexed their muscles and showed their intention to push the price of Bitcoin (BTC) closer to its all-time high of $65,900. One of the reasons for this move is the constant talk about the possibility of approving an Exchange Traded Fund (ETF) until the end of October. Data from Markets Pro and TradingView show that Bitcoin price rose 8.2% after hitting a low of $54,103 on October 13, to an intraday high of $58,532 on October 14 rising as ETF discussions turned a new chapter on Twitter Crypto. The jump above $58,500 is also significant as it marks a 100 percent rise in BTC price from a low of $29,193 on July 20, signaling a strong rebound and increasing demand. The price of Bitcoin is also a signal that market participants are accumulating again, a fact supported by Glassnode data which shows the number of bitcoins in wallets of all sizes has increased as the price briefly for mid-June fell below $29,000.
Rising prices and increasing bullish mood around Bitcoin have also helped to attract additional attention to Bitcoin-related projects that aim to facilitate integration with the Decentralized Financing Ecosystem (DeFi) and add smart contract opportunities to the Bitcoin ecosystem. The beneficiary is Badger DAO, a decentralized autonomous organization focused on building products and infrastructure around Bitcoin's utility in DeFi. Data from and TradingView shows that the price of the BADGER token has risen 187% since October 1, from a low of $15.69 to a daily high of $45.09 on October 14, as its 24-hour Trading volume increased 147% to USD 162 million.
Another Bitcoin-focused project that has seen the price of the symbol skyrocket is Stacks, a single-tier blockchain solution that aims to bring smart contracts and decentralized applications to the Bitcoin network. Data from VORTECS™ opens up a bullish outlook for the STX Stacks coin on October 11 ahead of the recent price hike. The VORTECS™ score, exclusive is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movement and Twitter activity. As can be seen in the chart above, the VORTECS™ Score for STX started rising on October 11 and reached 82 around five hours before the price rose 33% over the next two days.
Overall, the ongoing discussion of Bitcoin ETFs continues to help fuel speculation and price action in the crypto market, especially for the tokens associated with the top cryptocurrency. But caution is needed, because there is still a possibility that this could turn into an event to buy rumors, sell news. It should also be noted that the possibility of a Bitcoin ETF was discussed back in 2013 and one of the driving forces behind the 2017-2018 bull cycle was the assumption that the arrival of the BTC ETF was guaranteed. Open Interest (OI) for Bitcoin (BTC) futures traded on the Chicago Mercantile Exchange (CME) rose to a new record high on October 14, as BTC regained a five-month high of $58,550 on BitStamp.
The total number of derivative contracts outstanding on the CME Group's Bitcoin futures market stood at $3.22 billion, down just $40 million from the record high seen in February 2021, according to data provided by ByBt.com. Even so, it turns out that the OI is higher than when the Bitcoin price peaked in mid-April. More specifically, the OI of CME Bitcoin Futures was $3.02 billion on April 14, the day the price of BTC hit nearly $65,000. On October 14, however, the Olympics were more than 6 percent higher than in mid-April, even though the price of BTC fluctuated in the $57,000 to $58,550 range. Traders often use OI as an indicator to confirm trends in both the derivatives and spot markets. For example, more and more derivative contracts in circulation will be interpreted as new money entering the market regardless of the bias.
In the case of Bitcoin, the increased open interest in the futures market seems to be an indication of the willingness of accredited investors to increase their exposure to BTC. Recent OI measurements show that more institutional capital is entering the Bitcoin market. As a result, investors appear more confident to take new positions in the $50,000 to $58,000 price range, with CME volume increasing over the past seven days. Analysts see steady increases in OI, volume and price as an indication of renewed buying in the futures market. It also puts the underlying asset in a better position to continue its uptrend. Bitcoin appears to be in a similar upward trend.
The main evidence of bitcoin bullishness is the battle, which emerged from the Commodity Futures Trading Commission document released October 5. He noted that the trading sector, which consists of corporate hedging, has accelerated the buying of bitcoin futures. You now hold a net position of over 10,000 BTC. However, at the same time, hedge funds and retail investors turned out to be net short in the Bitcoin futures market. However, this could be their tactic to offset long positions elsewhere, such as the spot market. This is mainly due to the higher annual premium available on the spot market with CME Bitcoin futures prices. Over the past few days, CME Bitcoin futures prices have been trading consistently 15% above the spot price of BTC, compared to an average of around 7.7% in the first nine months of 2021.
The latest attack on the spot market for bitcoin also comes according to a statement from the US regulator. For example, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), and Jerome Powell, chairman of the Federal Reserve, spoke out against the Bitcoin ban. Meanwhile, the rising prospect of SEC approval for a Bitcoin ETF has also fueled the “buy rumor” story. Investors are also seeking exposure to the Bitcoin market as consumer prices continue to rise in the United States. According to the Ministry of Manpower, the consumer price index (CPI) rose in September for the first time in 13 years to 5.4% yoy. JP Morgan Chase noted in his latest report that higher inflation has led institutional investors to seek exposure to Bitcoin, with some even seeing the cryptocurrency as a better port of value than gold. In another report released in January 2021, the US banking giant predicted the price of BTC would hit $140,000 in the long term.
"The transfer of gold as an 'alternative' currency means a huge increase in bitcoin over the long term," he said. “The convergence of volatility between Bitcoin and gold is not going to happen so quickly and from our point of view it will take several years. That means a theoretical Bitcoin price above $146,000 should be seen as a long-term goal for the year. "