As Bitcoin was on the rise, technology stocks were simultaneously declining. All eyes are now on the Federal Reserve’s upcoming decision scheduled for Wednesday.
Notably, Santiment, a data analytics firm, has noticed that as cryptocurrency prices surge, traders are showing an increased appetite for risk.
Cryptocurrencies on the Rise Amid Bitcoin ETF Optimism
Major cryptocurrencies experienced a surge in value due to growing optimism about the approval of a Bitcoin exchange-traded fund (ETF). Bitcoin, which has typically moved in line with U.S. stock markets, now seems to be going its own way. It’s important to note that Bitcoin has gained over 100% year-to-date, which is quite remarkable.
In recent news, BlackRock’s ETF, IBTC, which was expected to make a big impact, was unexpectedly removed from the Depository Trust & Clearing Corporation’s website.
ETF Expert Highlights Promising Signs for Bitcoin
Eric Balchunas, an experienced ETF analyst at Bloomberg, has drawn attention to a noteworthy development in the world of Exchange-Traded Funds (ETFs). He pointed out that the ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF to receive regulatory approval in the U.S. in 2021, had an impressive week with a trading volume of $1.7 billion.
Furthermore, the Grayscale Bitcoin Trust (GBTC) recorded a trading volume of $800 million. These substantial increases in trading volume for these existing instruments suggest that when spot Bitcoin ETFs are eventually introduced, they are likely to attract significant trading interest.
Notable: $BITO traded $1.7b last week, 2nd biggest week since its wild WEEK ONE. $GBTC did $800m. That's $2.5b (top 1% among ETFs) into two less desirable methods (vs spot) for exposure = while we think spot ETFs unlikely to set records on DAY ONE, clearly there's an audience pic.twitter.com/6bFYtE0UoR
— Eric Balchunas (@EricBalchunas) October 28, 2023
The global cryptocurrency market is currently valued at $1.27 trillion, showing a 1.64% increase over the past 24 hours.
U.S. Stock Futures Signal Positive Start Amid Key Events
In the United States, stock futures have opened with a slight uptick today, suggesting a positive beginning to a busy week. Investors are eagerly anticipating significant events, including the Federal Reserve’s interest rate decision, the release of the jobs report, and Apple’s earnings report.
S&P 500 futures have risen by 0.3%, Nasdaq-100 futures are up by 0.4%, and Dow Jones Industrial Average futures show a 0.1% increase.
The Federal Reserve is set to announce its decision on Wednesday, and it’s widely expected that they will maintain their benchmark interest rate without changes. This decision carries great importance, especially in light of the recent stock market decline, which has, in part, been linked to rising interest rates.
Analysts Views
Cryptocurrency expert Michael Van De Poppe mentioned that the current crypto market cap is facing some challenges. What’s intriguing is that it has been steadily making higher highs and higher lows since hitting a low of $750 billion back in November. Van De Poppe suggests that the next goal for the market cap is $1.8 trillion.
The total market capitalization of #Crypto is currently facing a resistance.
More importantly, it's been making consisten higher highs and higher lows since the November low at $750 billion.
Next target: $1.8T
Watch the video here:https://t.co/SkiYa8NF5i pic.twitter.com/SHCK0SBLG1
— Michaël van de Poppe (@CryptoMichNL) October 29, 2023
According to crypto analyst Michael Van De Poppe, he believes Bitcoin might face some resistance at around $38,000, but there’s a good chance it could reach $45,000 to $50,000 before its next halving. After that, he expects a period of consolidation and sideways movement before reaching new all-time highs. During this time, he anticipates that altcoins could start gaining strength.
Pseudonymous crypto analyst Pentoshi emphasizes the importance of keeping an eye on the closing price of Bitcoin because it could indicate a potential change in the current trend. Looking ahead, Pentoshi suggests that Bitcoin might reach a range of $40,000 to $42,000 in the coming weeks.
$BTC nothing unchanged
Most important levels to play marked
Closing below purple = likely deviation and invalidation
40-42k on the table in the weeks ahead pic.twitter.com/MfmKCQZpO3
— Pentoshi 🐧 euroPeng 🇪🇺 (@Pentosh1) October 29, 2023
Santiment, a platform that analyzes cryptocurrency activities, noticed that as cryptocurrency prices go up, traders are getting more daring. As a result, there’s been a big jump in the number of future and open positions for Bitcoin, with a $922 million increase in open interest in just the last week.
🤑 Higher #crypto prices means more room for traders to take risks. More future and open positions have been rapidly opening for #Bitcoin, which has seen a $922M increase in open interest in the past week alone. #FOMO, however, is something to watch. https://t.co/yt7oBHUpYF pic.twitter.com/KlZMcScjB8
— Santiment (@santimentfeed) October 26, 2023
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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