The report that the SEC had approved a BlackRock spot bitcoin ETF proposal — which Cointelegraph later admitted was inaccurate — caused bitcoin’s price to rise by nearly 7% in minutes to around $30,000. Bitcoin’s (BTC) price dropped after it was revealed that the SEC had not approved the product. However, a false report of spot bitcoin ETF clearance provided a taste of the type of price activity bitcoin could see if and when the actual thing happens. Additionally, it demonstrated that traders and market participants have their finger on the trading trigger and that there is an untapped appetite for positive news on the cryptocurrency front.
Fundamental Updates
Let’s delve into the significant developments shaping the crypto market landscape:
Approvals of Bitcoin ETFs(spot) Could Add $1 Trillion: BlackRock, Bitwise, VanEck, Fidelity, and Valkyrie are just a few of the businesses that have submitted applications to start up Bitcoin Exchange Traded Funds (ETFs). According to the projections used by CryptoQuant, the adoption of Bitcoin ETFs might result in $155 billion in new investments, growing the market cap by $450 to 900 billion
The combined Assets Under Management (AUM) of the companies listed above is approximately $15.6 trillion. If they invested 1% of their AUM in these Bitcoin ETFs, the total US dollar amount that would enter the Bitcoin market would be $155 billion. To put this in context, these sums account for over one-third of Bitcoin’s current market valuation. During previous bull markets, Bitcoin’s market capitalization grew at a rate of 3 to 5 times faster than its realized capitalization. This means that for every extra dollar that enters the Bitcoin market, the market capitalization may possibly increase by 3x to 5x.
- Uniswap Labs to Charge 0.15% Fee on Crypto Swaps: Uniswap Labs, the core firm that built Uniswap, will charge a 0.15% fee on trades including ETH, USDC, and other tokens. Only swaps executed through Uniswap Labs’ front end will be charged. The cost differs from the existing “protocol fee” handled by governance voters at Uniswap. It is imposed by Uniswap Labs in order to sustainably fund our operations. This interface cost is one of the lowest in the business, and it will help us to continue researching, developing, building, shipping, improving, and expanding crypto and DeFi.
- Creditors of FTX Might See a $9 Billion Dispersement: A revised plan put forth by the bankrupt cryptocurrency exchange FTX aims to refund more than 90% of creditor holdings that were present at the exchange before its bankruptcy in November 2022. By December 16, 2023, the debtors’ organisation in charge of managing the bankruptcy procedure intends to formally file the request with a U.S. bankruptcy court. The FTX Debtors predict that if the Amended Plan is accepted by the Bankruptcy Court before the end of the second quarter of 2024, customers of FTX.com and FTX US will receive more than 90% of the distributable value globally. This estimated worth is $166 million for FTX.US whereas it is $8.9 billion for FTX.com.
Key Data Points
- Total market capitalization: The total market capitalization of the crypto market is currently around $1.12 trillion. This is a net $40 Billion change from last week.
- Bitcoin dominance: Bitcoin dominance, which tracks the percentage of the total market capitalization that is held by Bitcoin, is currently at around 49.4%. This is 2.7% up from last week.
- ETH dominance: ETH dominance, which tracks the percentage of the total market capitalization that is held by Ethereum, is currently at around 16.7%. This is 2.90% down from last week.
Bitcoin Price Analysis:
Bitcoin temporarily rose 7% to $30,000 before retreating on an incorrect news item about the SEC approving BlackRock’s spot BTC ETF registration. The momentum accelerated further, as the BTC/USDT pair soared above the $30,000 psychological obstacle. However, the excitement was short-lived as bears quickly sold at higher levels, yanking the price back below $28,500. The bulls will have a little advantage as long as Bitcoin price remains above the resistance mark of $27,812. However, if the price falls from its current level and closes below $27,812, the bears will make one more try to sink and sustain the price below $26,700.
For the previous several months, Bitcoin has been fluctuating between $24,719 and $30,500. In general, traders buy near the range low and sell near the range high when trading in a range.
BTC Technical Indicator:
Macro Updates:
- The labour market’s tightness continued to loosen, and prices continued to rise at a moderate rate, resulting in little change in the U.S. economy over the past few days.
- The economy’s near-term outlook was generally interpreted as stable or somewhat weaker growth.
- Given the recent increase in longer-term Treasury yields, market participants are placing significant bets against the possibility of a rate shift being implemented at the forthcoming meeting.
- The MBA Purchase Index reached its lowest point since February 1995, falling to 129.8 from 137.5 during the course of the last week. The demand for mortgages is still at an all-time low.
Bitcoin returns were -4.81% for this week. The Alpha Blue Chip Focused Strategy returns were −3.76% during the same period (12 October – 19 October). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were −2.79% and −2.92%, respectively.
