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- Bitcoin (BTC) has found stability above $60,000 after reaching a high of $62,000 going into next week.
- Experts are optimistically cautious as a Bitcoin Futures ETF could easily trigger a wide sell-off.
The market is celebrating a win this weekend after Bitcoin (BTC) led the market to multi-month highs. For Bitcoin, in particular, the digital asset has climbed above $62,000 and is now roughly $2,000 away from retesting its ATH high of $64,000 established in Q1 of the year.
At the time of press, Bitcoin is exchanging for around $62,400 after a 4 percent price increase in the last 24 hours. With a 46.3 percent dominance, the crypto king has led to the wider market cap climbing above $2.5 trillion.
For the most part, the recent price surge has been propelled by the recent chatter around a Bitcoin ETF approval in Q4. Recent comments coming from the SEC and from persons close to the matter, a Bitcoin Futures ETF is set to be approved in the coming week. Experts have described Bitcoin Futures ETFs as the closest thing to an actual Bitcoin ETF which remains a dangling dream for Bitcoin enthusiasts.
With a Bitcoin Futures ETF a near certainty, a lot of retail and institutional investors are ‘buying the rumor,’ driving the current price surge. But what comes next?
There is a chance that the SEC doesn’t approve this and those buying for speculation reasons, quickly exit their positions. In this scenario, there will be a pullback and demand for the asset will dictate the long term price projection. If there is enough demand, prices will hold above critical support levels. The rumour is likely to stay alive for the rest of the year ensuring prices remain relatively stable.
Experts expectations for BTC with the Bitcoin Futures ETF approval
What most enthusiasts expect is an approval that will continue fueling BTC prices which leads to a new all-time high above $65,000. But while the masses subscribe to this prediction, some analysts are concerned that some institutional investors will ‘sell the fact.’ In this case, the sell-off will lead to a price drop in the near term.
Two events are highlighted for this, the Coinbase listing and El Salvador adopting Bitcoin as legal tender. For both, most bought the rumour and there was a short-lived rally which after reaching a local top, gains were cleaned out. The same has been witnessed with the second-largest cryptocurrency by market cap, Ethereum and its recent London upgrade.
Related: Ethereum developers confirm London upgrade to mainnet
Dan Morehead, CEO & co-chief investment officer of Pantera Capital, wrote about this situation. He highlighted the CME’s listing of Bitcoin futures in December 2017. At the time, Bitcoin accelerated to new highs which were followed by substantial loss.
Chad Steinglass, head of trading at digital assets firm CrossTower, differed this with the thought of selling the news, he stated;
There are some data points that support the theory of ‘buy the rumor sell the news’ in the crypto space, however, I don’t think it is something that can be relied on and is much more a function of traders overestimating the impact of the news and how crowded their positioning is than it is a sort of real market dynamic,
Regardless of how next week plays out, experts can agree that in the coming week and further into the coming weeks, there will be high volatility, a historically common occurrence in Q4 for Bitcoin.
