Overview
Many market players were taken aback when Bitcoin quickly climbed beyond the $31,000 to $32,500 resistance zone. Normally, the price will consolidate or pause near severe overhead resistance levels, but that was not the case this time. Market players are optimistic because they believe a Bitcoin spot exchange-traded fund(ETF) will be approved sooner rather than later.
Fundamental Updates
Let’s delve into the significant developments shaping the crypto market landscape:
- BlackRock’s iShares Bitcoin ETF appearance on DTCC site: IBTC, the ticker for BlackRock’s spot Bitcoin exchange-traded fund (ETF), has reappeared on the website of the Depository Trust & Clearing Corporation (DTCC) after a brief absence. The price of Bitcoin soared to new yearly highs following the Oct. 23 appearance of IBTC on the website, sending markets into a frenzy over the possible imminent approval of a spot ETF. When the ticker discreetly vanished from the website a few hours later, Bitcoin’s price dropped nearly 3%, indicating that a significant portion of trading activity appears to be dependent on monitoring ETF-related developments.
The ‘N’ just indicates that it is not yet available for creation and exchange because it is not yet live.
Crypto Exchange FTX Considers Revival Plans: FTX is in active talks with possible investors, looking at several options for relaunching the exchange. Selling the entire platform, including its list of more than nine million subscribers, is one option, as is establishing a strategic partnership to support its rebirth. This development follows the submission of a draught plan by FTX in late July, which advocated a strategy of separating its creditors into various groups of claimants. Furthermore, the strategy proposed a feasible means for one of these parties to revitalise the moribund exchange with the help of external investors. At least three buyers are still in talks with FTX about acquiring the company’s assets and over 9 million user base. Kevin Cofsky, FTX’s bankruptcy advisor, stated that a decision on whether to sell the exchange, collaborate with an outside entity to relaunch it, or use a “stalking horse” offer to trigger an auction process might be made by mid-December.
Key Data Points
- Total market capitalization: The total market capitalization of the crypto market is currently around $1.32 trillion. This is a net $200 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 51%. This is 3.23% 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 16.8%. This is 0.59% up from last week.
Bitcoin Price Analysis:
Bitcoin (BTC) has reached levels not seen since May 2022, which has surprised many people and started a short-term rally. BTC halving event and the expected launch of a spot BTC ETF are two big reasons for this rise. This surge caused FOMO (fear of losing out) in the markets, which made more people buy. Bitcoin had more than 52% market dominance, and it was worth more than $35,000.
In case the price goes down, $32,500 and then $30,417 are important levels to keep an eye on. This zone is likely to be fiercely defended by buyers. There are bulls who want to take the BTC/USDT pair to $38,000 or higher if the price goes up from this support zone. On the other hand, a drop below $30,417 and a daily finish below that will show that the recent breakout may have been a bull trap.
BTC Technical Indicator:
Macro Updates:
- The new, more volatile regime has caused broad equities to begin to adjust, but this doesn’t entirely reflect the macro damage one can anticipate.
- Earnings season is off to a great start. 73% outperformed analyst earnings projections for the 17% of S&P 500 companies that have released their financial statements.
- For the previous eighteen months, the US economy has been in “stealth stagnation” mode. In the process of totalizing earnings, profits, households, and businesses.
- Markets will be negatively impacted by the Fed’s projected decision to maintain higher interest rates for a longer period of time. Rates would likely stay over 4% by the end of the following year, according to investors’ 98% pricing in.
Bitcoin returns were -4.81% for this week. The Alpha Blue Chip Focused Strategy returns were 8.63% during the same period (19 October – 26 October). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were 1.62% and -2.14%, respectively.
