Bitcoin price in recovery mode ahead of tomorrow’s AUD$1.1 billion options expiry
BTC has wiped out its most recent losses by recording monthly gains in excess of 3%.
- There are rumours that the US SEC may be on the verge of accepting Fidelity's ETF application in the coming few days.
- A BTC transaction worth AUD$2.7 billion was processed for just AUD$1 earlier this week.
- Reports suggest that a growing population of Aussie baby boomers are transferring their wealth into crypto.
After having slipped down to the all-important AUD$60k resistance zone a little over 72 hours ago, Bitcoin, the world's largest cryptocurrency by total market capitalisation, has continued to mount a steady comeback, with the asset having wiped out its losses from the previous week. At press time, BTC is trading at AUD$64,975.
This ongoing momentum comes on the heels of news that Morgan Stanley, one of the largest banking entities in the USA, has appointed a leader for its dedicated cryptocurrency research wing. There is also growing noise that Fidelity Digital Assets, an investment arm of the US$4.2 trillion global fund manager, may become the first US-based firm to get approval for a Bitcoin Exchange Traded Fund (ETF) from the American Securities and Exchange Commission (SEC).
Lastly, 17 September will see US$810 million (AUD$1.1 billion approximately) in BTC options expire; however, what's interesting to note is that derivatives data suggests that bulls may be looking to push BTC past the US$50k mark soon. Therefore, it will be interesting to see how things play out for the market over the weekend.
Low Bitcoin transaction fees highlight the power of crypto
As per data made available by analytics platform Blockchain.com, a mammoth BTC transaction worth AUD$2.7+ billion took place just a couple of days ago. However, what's interesting to note is that despite the enormous financial value of the transaction, the fee incurred for the transfer was just 0.00001713 BTC fees – which works out to around a single Australian dollar. In this regard, it is also worth noting that just over a year ago, another Bitcoin transaction worth US$1 billion was successfully processed for a gas fee of under US$4.
To put into perspective how low these fee rates are, regular fiat transfers take anywhere between 1% and 4% in transaction fees while requiring a total of 2-4 business working days to process. In that sense, a transfer worth US$2 billion would cost anywhere between US$20 million and US$60 million in processing charges alone.
Aussie boomers are betting heavily on crypto
According to the CEO of Australia-based cryptocurrency trading platform BTC Markets Caroline Bowler, the last 12-odd months have seen a growing number of older clients make use of the platform for crypto-acquisition purposes. Baby boomers, an age bracket that includes individuals born between 1946 and 1964, now constitute over 5% of the platform's estimated 325,000 customers.
Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a range of cryptocurrencies at the time of writing
