Bitcoin price soars as the US approves a BTC-related ETF
Growing investor confidence has helped push Bitcoin's fortnightly gains to 19.7%.
- Bitcoin's market dominance index currently stands at an impressive 43%.
- An ETF providing investors with indirect exposure to BTC has been approved by the US SEC.
- Thanks to its most recent rally, Bitcoin's market cap has once again scaled past the $1 trillion mark.
The last week has been absolutely insane for the crypto market, with Bitcoin, the world's largest cryptocurrency by total market capitalisation, rising from a relative low of around AUD$57,000 to over $75,000, thereby showcasing a growth of 20+%. At press time, BTC is trading for AUD$73,800.
This ongoing ascent comes at a time when the United States Securities and Exchange Commission, or SEC, gave its regulatory greenlight to an ETF by Volt Crypto Industry Revolution and Tech, an offering that is designed to provide companies with easy exposure to Bitcoin.
To be a bit more specific, the ETF, which was approved earlier this week, seeks to track a number of entities that hold a majority of their assets in Bitcoin as well as derive a bulk of their profits from activities such as Bitcoin mining, lending and so on. In this regard, it is pertinent to highlight that 80% of the fund's holdings are set to be allocated to such companies with the ETF all set to be listed on the Stock Exchange Arca listing under the ticker symbol BTCR.
Bitcoin reclaims US$1 trillion market cap but for how long?
After breaking past the US$55,000 (AUD$75,000) resistance recently, Bitcoin successfully reclaimed its $1 trillion market cap status. However, with volatility once again looming on the horizon, it appears as though the currency's gains may be in a bit of jeopardy. That said, pseudonomous Twitter analyst Rekt Capital believes that such short term turbulence should not be paid any heed to, adding:
"Historically, BTC tends to enjoy an average positive monthly return of +32% in the month of October. This October, $BTC has already rallied +29% and it's only the first week of the month."
What lies ahead for BTC?
As per Bitcoin's technicals, if the currency is able to climb out of its current multi-week price range, the flagship cryptocurrency's next major resistance lies close to its all time high value of around US$64,000. In this regard, Konstantin Anissimov, executive director of CEX.IO, was quoted as saying that if Bitcoin is able to maintain its current price levels, there is no reason to doubt that more bullish action may be on the cards for the asset, adding:
"At this current growth pace, Bitcoin has formed very strong support at the $50,000 price point. A break below or above these levels can stir another cataclysmic price reversal or a massive run toward $60,000 in Q4."
Lastly, it should be noted that just over a week ago, market sentiment related to the crypto industry lay in the "fear zone" but thanks to this ongoing rally, investor sentiment has flipped back to "greed", thus suggesting the possibility of more bullish action over the coming few weeks.
Disclosure: The author owns a range of cryptocurrencies at the time of writing