Bitcoin Smashes $60,000 Ahead of First-Ever US Crypto ETF Launch

18 Oct 2021 · 3rd Party Analysis

Vector Shield with Bitcoin logo over a Cnadlechart Background. Bitcoin Smashes $60,000 Ahead of First-Ever US Crypto ETF Launch

WRITTEN BY ThorFX

In Summary:

  • Bitcoin price rises to a six-month high above $60,000 ahead of potential ETF approval
  • The crypto market expects ProShares’ Bitcoin ETF to start trading as soon as Tuesday

What’s Trading in the Markets?

Bitcoin, the world’s biggest cryptocurrency, has been steadily marching higher so far in October. Not only that, the leading digital token smashed $60,000 and reached a six-month high of $62,800. The price was just 3% below the record level set on April 14 when bitcoin traded at $64,800.

Furthermore, crypto enthusiasts have been building expectations that US regulators will clear for trading the first Bitcoin ETF. In more detail, the financial watchdog in the US, the Securities and Exchange Commission, must review today a Bitcoin exchange-traded fund.

ProShares, an ETF products firm, has filed an application for an exchange-traded fund based on Bitcoin futures. The same is now on its final day of the review period. That said, the SEC will announce today if it grants approval to the first-ever Bitcoin ETF in the US.

It could, however, decide to delay or reject the applications. Nonetheless, crypto backers are excited to believe Gary Gensler, SEC Chairman, will give the green light.

What’s Bitcoin Doing Today?

Against that backdrop, the price of bitcoin today spiked to a session high of $62,450 per coin. The digital asset has added more than 50% to its value in less than three weeks. Moreover, other coins have also surged during October.

Ether, the second-largest token, is higher by more than 30% since Oct. 1, and currently trades near $3,900 per coin. Overall, the entire crypto market capitalization has topped $2.5tn for the second time in history.

Longer-term, the year so far has brought increased recognition and growth to digital assets. Now, with a Bitcoin ETF approval looking imminent, the market is on pace to expand even further. Analysts point that this would lead to a broader audience being able to get into cryptos. In addition, a Bitcoin ETF would signal increased trust in cryptos from regulators and policymakers.

Dive Deeper in the Financial World

In stocks and currency pairs, traders are optimistic to dive into this week’s volatility. Earnings reports, economic data, and even technical patterns are likely to narrate the moves in the broader financial market.

On that note, major US and European companies are set to deliver their earnings figures for the last quarter. Netflix, Tesla, IBM, Intel, and PayPal are only some of the high-flying names in the tech sector reporting this week.

In forex markets, the US dollar continues to dominate a weaker euro. The EUR/USD pair is trading near a multi-month low of around 1.1550. In addition, the USD/JPY is looking to have reached an inflection point as it’s nearly at a three-year top. The USD/CAD, on the other hand, is aiming to reduce its losses from last week as it’s gained a bit to trade near 1.24.

Economic News Today (EST time)

A lightweight agenda for today hovers over the financial markets. The Australian central bank, the RBA, is expected to release its meeting minutes at 09:30 pm. On the earning front, Charles Schwab and Phillips report their financial numbers today.

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