With a high of $68,955 and a low of $68,350, the price of bitcoin is gaining considerable traction. Increased liquidity and institutional investment have contributed to the rise, which followed the SEC's approval of Bitcoin ETF options.
Bitcoin spot products, such as BlackRock's ETF, which attracted over $1.05 billion in five days, and this new development have both contributed to the price spike. In addition, the approval creates an environment where short squeezes might occur, which would increase the pressure for prices to rise.
Bitcoin ETF Options Approved by the SEC, Boosting Market Liquidity
The SEC (Securities and Exchange Commission) of the United States authorized the NYSE and CBOE to trade options on spot Bitcoin ETFs on October 18.
This change opens the door for eleven exchange-traded fund (ETF) providers, including ARK21Shares Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, and BlackRock's iShares Bitcoin Trust. The approval expands trading possibilities by bringing Bitcoin ETF choices in line with current commodity-based ETFs.
The market is anticipated to get a significant influx of liquidity with the introduction of options trading. Bitwise CEO Jeff Park warned that these options may cause short squeezes, which would drive up Bitcoin prices as leveraged traders would be forced to purchase the cryptocurrency at a premium.
Optional risk management measures, as pointed out by MV Global's Tom Dunleavy, might potentially reduce Bitcoin's volatility.
The crypto industry has taken a major step forward with this clearance, which will increase institutional trust and market involvement.
BTC Surge Driven by $1.05B Inflows into BlackRock's Bitcoin ETF
An surge in investor demand for spot Bitcoin products is shown by the $1.05 billion inflows that BlackRock's Bitcoin ETF has received in only five trading days. Eighty percent of the people who put money into the iShares Bitcoin Trust (IBIT) were first-time iShares investors, according to Samara Cohen, BlackRock's chief investment officer for exchange-traded funds. This suggests that there is a lot of unmet demand.
Inflows of almost $393 million to BlackRock on October 16 alone helped to cement the company's position as market leader.
Inflows to Bitcoin ETFs as a whole fell by a little over $70.4 million on October 18, yet BlackRock still managed to take in over half of all funds.
According to Cohen, one of their main goals is to educate investors, which has been essential in attracting new players to the Bitcoin market.
With around $20 billion attributable to recent inflows, the total market valuation of all eleven spot Bitcoin ETFs has surpassed $63 billion.
The price of bitcoin has responded favorably, rising 9.2% in the last week to a current level of over $68,300. The trust in Bitcoin's popular adoption is being bolstered by this spike.
The price of bitcoin is consolidating below $69,000, a crucial resistance level. Due to a Neutral RSI
After hitting an intra-day high of $68,986, Bitcoin (BTC) is now undergoing consolidation around $68,200. At $68,990, the cryptocurrency encounters instant opposition; at $69,780 and $70,520, it encounters more obstacles.
The $67,985 level provides short-term support, while the $67,445 and $66,640 levels follow. As long as Bitcoin stays over $67,980, its 50-hour Exponential Moving Average (EMA), the market attitude will remain optimistic.
The market seems neutral with some upward movement possibilities as the Relative Strength Index (RSI) remains stable at 53.8.