Surely, Bitcoin (BTC) making a new all-time high (ATH) last week is a sign that it — and cryptocurrency in general — will fulfill a perfect destiny … and not just replace government-issued fiat currency … but also provide the framework for a decentralized global financial system.
Actually, that price action probably has more to do with the introduction, at long last, of a Bitcoin-focused exchange-traded fund (ETF).
In fact, two Bitcoin ETFs debuted last week. Neither holds physical Bitcoin; they’re based on futures contracts.
Still, this is good news. The uptake is at least a sign of retail investor hunger.
Meanwhile, Bloomberg’s Editorial Board seems a little too eager to declare crypto a dual failure, saying so far it’s neither “sweeping away government-issued money” nor “bringing about the broader revolution that its most ardent enthusiasts envision.”
The answer, Bloomberg posits, is “help from the governments that crypto was meant to sideline.”
Indeed, approval by the U.S. Securities and Exchange Commission (SEC) of these ETFs is a step toward a sort of co-optation guaranteeing for incumbents a share of burgeoning profits and, in turn, establishing a tax revenue stream.
By contrast, it looks like China is banning crypto.
And, of course, Bitcoin bounced on that news. (Perhaps the U.S. government satisfied its own fear of missing out by allowing its friends to profit from retail investor FOMO.)
Bottom line, to quote the great William Goldman, nobody knows anything … not Elon Musk, not Gary Gensler, not Xi Jinping.
Price is what pays. And the best way to follow it is with Sam Blumenfeld and the Weiss Crypto Alert team.
Here’s Sam’s note from Friday:
Bitcoin established a new all-time high this week, nearly eclipsing $67,000. It’s retreated since, which is a healthy sign. Pullbacks along the way ensure that the market isn’t entering a late-stage frenzy.
And the bullish news for Bitcoin extends beyond price action. The ProShares Bitcoin Strategy ETF (NYSEARCA: BITO) launched this week after gaining the U.S. Securities and Exchange Commission’s (SEC) approval. We saw significant price appreciation both before and after trading began.
If Bitcoin can manage to hold itself above $60,000, it should keep up its momentum and look to extend its new all-time high.
Of course, a larger pullback could still occur considering the magnitude of Bitcoin’s recent rally. BTC is up over 40% this month, and the next phase of this bull market should just be getting started. Bitcoin’s price is still well above its 21-day moving average, which is sitting at about $57,000.
Here’s Bitcoin’s price in U.S. dollars via Coinbase Global (Nasdaq: COIN):
Ethereum briefly gave its all-time high near $4,400 a scare before dipping as the broader market digests the recent rally. Despite not crossing that important threshold, it was still a major positive development that ETH was able to overtake its early September highs.
The second-largest cryptocurrency by market capitalization is holding itself above the strong previous resistance of $4,000, which was a significant hurdle.
If ETH manages to break through its all-time high, there will be no charted resistance slowing its ascent. Ethereum, along with most of the crypto market, is trading much higher than its 21-day moving average.
Here’s Ethereum’s price in U.S. dollars via Coinbase:
Here’s Sam with his clear-as-ever big-picture view:
The launch of a Bitcoin’s futures-backed ETF was a significant step for crypto, although investors would still love to see an ETF with direct spot price exposure.
Regardless, the fact that it set volume records shows the massive institutional and retail investor demand for Bitcoin exposure.
It’s highly encouraging to see Bitcoin set a new all-time high, and it’s especially pleasing for investors that its launch hasn’t turned into a significant “buy the news, sell the rumor” event at this point.
Bitcoin’s price has pulled back slightly following its ascent to new highs, but it did not see a steeper falloff like after the launch of smart contracts on Cardano (ADA).
The outlook for the crypto market is overwhelmingly positive as the global macroeconomic landscape, surging adoption and technical indicators all point toward higher future prices.
It should be just a matter of time before Bitcoin extends its new record.
Interested in the fast-moving cryptocurrency revolution and the fortune-making price action that characterizes it right now? Click here to follow along with Sam and Weiss Crypto Alert.
And if you’re interested in how crypto can provide yields four times higher than the average junk bond … 15 times higher than the S&P 500 dividend yield of 1.32% … and 67 times higher than the five-year jumbo CD … I highly recommend you check out Dr. Marin Weiss’ “Superyield Conference,” Nov. 2 at 2 p.m. Eastern.
Click here to learn more.
Best,
David Dittman
