Bitcoin rises to $55,000 ahead of the adoption of the first BTC-ETF
The last days have been joyful for the Bitcoin community. At first, the rate of the main cryptocurrency on the market managed to overcome the important psychological mark of $50,000, and today it has jumped over the level of $55,000.
While all traditional risky assets such as stocks and the dollar are falling, Bitcoin continues to confidently add in value. In parallel with the fact that the coin managed to reclaim $55,300 on Huobi, its capitalization increased by more than 7% in a day, breaking the indicator of 1 trillion.
Uptober finally gave the necessary impetus to the main cryptocurrency in the market, which it lost back in May 2021. Then the reason for the fall below the $55,000 level, many community members considered the news that Tesla was no longer accepting Bitcoins as payment for its electric cars. Following this and the aggravation of global “climate concerns”, China joined the pressure on the cryptocurrency industry. At first, his authorities banned the extraction of a new class of assets in the country and then added digital currency trading to the list of bans.
However, this week, the mood of the crypto asset improved markedly when Fed Chairman Jerome Powell said that the agency did not intend to follow the example of China and stifle the industry, at a cost of more than $2.2 trillion. A similar thought was expressed by Gary Gensler, who announced that the SEC was not going to impose a ban on digital currencies. He claims that today their fate in the United States is in the hands of Congress.
Some crypto experts believe that Bitcoin's meteoric rise is primarily due to the upcoming approval of the first BTC-ETF. According to them, this could happen as early as October 18, 2021. At the moment, the SEC has at least 13 applications for Bitcoin ETFs from the largest players in the financial market on the table. The deadline for making a final decision for one of them ProShares Bitcoin Strategy comes to an end just on October 18 this year.
The only snag for individual investors, if the BTC-ETF is adopted, may be that we are talking about futures ETFs, which are a more expensive and less liquid financial product, both for investors and for the issuers themselves in comparison with the spot option.
Talking about the next “stop” of Bitcoin, one of the Bloomberg analysts called the fourth quarter the most successful for the asset and outlined a step towards $60,000 as the nearest target. Kraken experts have confirmed the words about the fourth quarter, saying that historically it was the most successful for Bitcoin with an average return of 119% since 2011. If we talk about last year, then the value of the main cryptocurrency on the market then almost tripled.
At the moment, the price of Bitcoin is $55,116 on Huobi, and its capitalization, according to CoinMarketCap, exceeds $1.038 trillion. Whether the asset will be able to reach $60,000, we will be able to find out in the coming days.
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