Crypto Rally Pauses after Two Bitcoin ETFs Debut on Wall Street

25 Oct 2021 · 3rd Party Analysis

Vector of hand hodling Bitcoin coin. OVer a candlechart background. Crypto Rally Pauses after Two Bitcoin ETFs Debut on Wall Street

WRITTEN BY ThorFX

In Summary:

  • Cryptocurrency surge takes a breath as demand eases after Bitcoin ETF debuts
  • Two Bitcoin futures exchange-traded funds are now trading on Wall Street

What’s Trading in the Markets?

The cryptocurrency market has gone quiet after bitcoin notched a new all-time high. Traders and investors in the fast-emerging digital asset space are now weighing the recent market-moving developments. More precisely, the newest additions to Wall Street – two Bitcoin futures exchange-traded funds (ETFs).

With that in mind, last week Wall Street welcomed the first-ever Bitcoin ETF. In the same week, the price of the orange coin jumped to a fresh peak of around $67,000. The fund, Bitcoin Strategy ETF, attracted about $1bn in trading volume, the second-biggest trading debut for an ETF.

The second Bitcoin-linked ETF to land on Wall Street, the Valkyrie fund, coincided with the falling price of bitcoin on Friday. As a result, after a few hours of trading, shares of the ETF were down about 4% from the initial price.

In stark contrast to the ProShares fund, the second-to-market Bitcoin ETF realized a trading volume of about $80m in its trading debut. Still, it’s worth noting that the Bitcoin Strategy ETF also fell about 4% on Friday. Bitcoin, on that note, dropped 3% on Friday but finished the week up about 2%.

What’s Bitcoin Doing Today?

Now that the listing of both ProShares’ Bitcoin ETF and the Valkyrie Bitcoin ETF is priced in, bitcoin slipped. In more detail, the price of the leading cryptocurrency was about 10% lower a few days after its all-time high.

Over the weekend, bitcoin traded around $60,000, down from a record of $67,000 on Wednesday.

Today, however, the price of the original cryptocurrency is gravitating towards $63,000 per token.

Dive Deeper in the Financial World

Meanwhile, in stocks and currency pairs, investors have been searching for direction as they assess the risks and opportunities ahead. On the one hand, high inflation expectations are weighing on the market sentiment. Even Fed Chairman Jerome Powell warned on Friday the increase in consumer prices might last well into next year. In that case, Mr. Powell said, “we would certainly use our tools to preserve price stability.”

On the other hand, a stronger-than-expected earnings season is already boosting stocks across the board. After major companies and investment banks reported earnings figures over the past two weeks, stock indexes have rallied.

Furthermore, the Dow Jones Industrial Average closed at a record high on Friday. In addition, the S&P500 and the Nasdaq Composite also posted positive performance.

What to Expect in the Markets?

The continuation of the earnings reports is certainly a major theme for investors in the week ahead. Not only that, the market expects reports from tech giants, including Apple, Amazon, Microsoft and Facebook.

Stakes are high as analysts predict record growth for the last quarter for Big Tech. That said, the reports would be carefully monitored by traders looking to enter the market, or individual stocks, this week.

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