On Oct. 19, Bitcoin (BTC) hovered near a crucial breakout level after a “FOMO liquidity grab” saw it rejected at $69,000.
Data from Cointelegraph Markets Pro and TradingView indicated that BTC’s price action tightened following the last Wall Street trading session of the week.
On the previous day, BTC/USD reached new three-month highs, nearly touching $69,000 on Bitstamp before losing its sudden gains.
“Low volume + bear divs on this breakout,” popular trader Roman commented on X, adding, “Still think we come back down and consolidate before moving higher. This seems like a fomo liquidity grab before the real breakout.”
Data from CoinGlass showed thick liquidity barriers forming around the spot price, with significant sell orders capping Bitcoin’s upward movement.
Roman highlighted a key area of interest at $68,400, describing it as a breakout zone of significant importance since the March all-time high. “Everyone is watching 68.4k to break the macro range,” he stated.
Fellow trader and analyst Rekt Capital noted that while Bitcoin was attempting to push past the top of the resistance area, bulls needed to establish the zone above $68,000 as solid support.
“Bitcoin is once again pressing beyond the very top of the resistance area (red),” Rekt Capital explained, adding, “Bitcoin just needs one Daily Close beyond the red resistance to position itself for a confirmed breakout from here. Daily Close is essential to confirm lack of upside wicks beyond resistance.”
The Oct. 18 daily close finished slightly above $68,400, marking Bitcoin’s highest closing price since June 10.
Looking ahead, trading firm QCP Capital pointed to favorable macroeconomic trends for Bitcoin bulls, indicating positive momentum could continue.
On Oct. 19, Bitcoin (BTC) remained near a key breakout level, briefly touching $69,000 before pulling back. With BTC trading just above $68,000, its market capitalization has surged to $1.35 trillion, now exceeding Ethereum’s market cap by over $1 trillion.
The 8.9% increase in Bitcoin’s market cap since Oct. 12 has fueled speculation about continued upward momentum. “Bitcoin now has a $1 Trillion market cap lead over Ethereum, a new all-time high for the spread,” Glassnode lead analyst James Check noted in an Oct. 19 post on X.
While Bitcoin’s market cap has reached $1.35 trillion, Ethereum’s stands at $318.32 billion. This development follows Bitcoin hitting $67,000 for the first time since July 28, when its market cap was last at $1.34 trillion.
At the time of writing, Bitcoin is trading at $68,152, slightly down by 0.30% since Oct. 19. Bitcoin’s all-time high market cap was $1.41 trillion on May 21. Currently, Bitcoin ranks tenth among global assets by market cap, just behind Meta Platforms (Facebook) with $1.48 trillion.
Gold remains the largest asset by market cap, valued at $18.38 trillion, according to CompaniesMarketCap.
Bitcoin maximalist Fred Krueger highlighted Bitcoin’s potential, saying, “The market is currently $50 trillion. Let’s estimate $100 trillion by 2040. That’s 76 times Bitcoin’s $1.3 trillion market cap. In other words, Bitcoin is going to $5 million.”
Other analysts echo this optimism. Kyle Chasse urged his followers to “do the math,” citing BlackRock CEO Larry Fink’s comparison of Bitcoin to the “early days” of the mortgage market. Similarly, crypto analyst Dylan LeClair referred to Bitcoin as a “$100 trillion idea” during an Oct. 15 Fox Business interview.
Some traders argue that Bitcoin still shows no signs of excessive speculation. “The Fed printed $16T during the pandemic. That’s 12.4 times the current Bitcoin market cap. We are very early,” stated pseudonymous crypto investor Bitcoin for Freedom in a recent post.
On October 18, the United States Securities and Exchange Commission (SEC) approved applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list options for spot Bitcoin exchange-traded funds (ETFs).
This approval allows options trading for 11 ETF providers on the NYSE, including Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree’s Bitcoin Fund, Grayscale’s Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, BlackRock’s iShares Bitcoin Trust ETF, and the Valkyrie Bitcoin Fund.
The CBOE had filed an application in August 2024 to list options for the spot Bitcoin ETF providers through a proposed rule change. The SEC’s decision places Bitcoin ETF options in the same category as other commodity-based ETFs listed on the CBOE, except for Grayscale’s Bitcoin Mini Trust.
The approval is expected to bring significant changes to the Bitcoin market by increasing liquidity and potentially impacting price movements.
Jeff Park, an executive at Bitwise, described the approval as a major upgrade over existing platforms like LedgerX and Deribit, which do not have central guarantors. Park also suggested that the introduction of options could lead to short squeezes, where overleveraged short traders are forced to buy Bitcoin to cover their positions. He remarked, “Saying you can’t short squeeze a trillion-dollar asset is like saying you can’t make an elephant dance. Sure, it’s huge, but if you tie enough ropes to its legs and pull hard enough, even the biggest creature can be moved in ways it doesn’t want.”
Tom Dunleavy, managing partner at investment firm MV Global, noted that the introduction of options could also help reduce Bitcoin’s high volatility and lead to more stable market conditions over time.
Bitcoin is approaching a crucial weekly close as bulls aim to break a seven-month downtrend.
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin attempting to overcome a resistance level that has held firm since March’s all-time high. Bitcoin (BTC), currently trading around $67,686, has spent over six months consolidating within a downward-sloping channel, following its record high of $73,800.
Despite multiple attempts to push into new price discovery, BTC/USD has remained within this range. Now, traders are hopeful that this time may be different.
Analyzing the weekly chart, trader and analyst Rekt Capital noted that Bitcoin has repeatedly tested the upper edge of the channel, with the latest attempt coming this week. He explained, “Bitcoin has experienced a rejection from the top of the Downtrending Channel (red) just like in the past (blue circles). It’s essential Bitcoin Weekly Closes inside the red resistance to avoid a deeper rejection from here.”
The current channel top is around $68,000, and with buyers continuing to apply pressure, a close beyond this level is within reach, leaving bears with limited options.
Rekt Capital added, “Still early on in the week. Generally, we need to observe this Downtrending Channel resistance (red) for signs of weakening compared to previous rejections.”
On shorter timeframes, there is more reason for optimism as daily closes have already occurred outside the channel. Daan Crypto Trades, another trader and analyst, noted that “With the recent move, it has finally broken out of the channel it traded in for most of 2024.”
Daan’s accompanying chart indicated that BTC/USD has also surpassed its 200-day simple moving average (SMA) and exponential moving average (EMA) cloud, which had posed challenges since the summer. He concluded, “Short-Mid timeframe trend is also up.”
Bitcoin (BTC) hovered around $68,000 on October 16 after reaching new 11-week highs as the Wall Street session began.
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin’s price surge continuing, surpassing the previous day’s peak, which was driven by leveraged trades.
While volatility was apparent, popular trader and analyst Skew cautioned about potential market manipulation. “Very active spoofing going on here today,” he noted on X regarding the Binance spot market. He pointed out that a gap of 1% to 2.5% between ask and bid liquidity could lead to volatility in the absence of passive flows.
Skew also warned that if BTC fell below $67,000, it could trigger a liquidation cascade for late-long positions in the derivatives market.
Meanwhile, most of the buying pressure came from spot buyers on Binance and Bitfinex, particularly around the Wall Street open, mirroring the prior day’s activity.
Monitoring resource Material Indicators observed increased exposure among both large and small investors. “FireCharts binned CVD once again shows all order classes buying Bitcoin,” the platform shared with its X followers, noting that bid liquidity was stacking above $66,000, with $70,000 in sight.
Some traders were confident that sellers would capitulate, marking the return of a bull market. Crypto trader and analyst Michaël van de Poppe predicted that Bitcoin would hit a new all-time high within the next few weeks, stating, “The trend has switched… likely $90K before EOY.”
Interestingly, BTC gained alongside the U.S. dollar, breaking their usual inverse correlation. The U.S. Dollar Index (DXY) climbed to 103.45, its highest level since August 8, a day when Bitcoin also saw a major upside of nearly 12%.
Fund issuer Stacked (STKD) has launched a new exchange-traded fund (ETF) that provides leveraged exposure to both Bitcoin (BTC) and gold, capitalizing on the growing “debasement trade” trend ahead of the U.S. presidential elections in November.
In an announcement on October 16, STKD introduced the Bitcoin & Gold ETF (BTGD), designed to offer investors exposure to “two scarcity assets that may protect against future inflation and currency debasement.” The actively managed ETF aims to allocate $1 to Bitcoin and $1 to gold for every $1 invested, utilizing a mix of ETFs and futures contracts linked to the prices of BTC and gold.
Futures contracts are standardized agreements to buy or sell an asset at a specified date in the future, providing investors with exposure without directly holding the underlying asset.
According to an October 3 report by JPMorgan, investors are turning to both Bitcoin and gold as they brace for potential economic instability fueled by rising geopolitical tensions and the upcoming U.S. elections. JPMorgan’s report, shared with Cointelegraph, suggests that these factors reinforce the “debasement trade,” where demand for assets like gold and Bitcoin spikes due to fears of inflation, geopolitical uncertainty, and persistent government deficits.
The “debasement trade” refers to the growing demand for assets that are perceived to protect against inflation and the devaluation of fiat currencies.
A Strategic Blend of Bitcoin and Gold
STKD emphasized that while debates often pit Bitcoin against gold, the two assets together can serve as a strategic combination for investors seeking both capital appreciation and portfolio hedging.
The launch of STKD’s ETF comes as a wave of proposed cryptocurrency-related ETFs are emerging ahead of the U.S. presidential election. Asset manager Canary Capital has also announced plans for ETFs focused on XRP and Litecoin, while Bitwise plans to launch an XRP ETF. Additionally, leveraged MicroStrategy ETFs reached $400 million in net assets, driven by retail investor interest in volatile Bitcoin investments, according to Bloomberg Intelligence.
Leveraged ETFs carry additional risk and may underperform due to the costs associated with daily rebalancing to maintain their leverage targets.
Bitcoin (BTC) hovered around $68,000 on October 16 after reaching new 11-week highs as the Wall Street session began.
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin’s price surge continuing, surpassing the previous day’s peak, which was driven by leveraged trades.
While volatility was apparent, popular trader and analyst Skew cautioned about potential market manipulation. “Very active spoofing going on here today,” he noted on X regarding the Binance spot market. He pointed out that a gap of 1% to 2.5% between ask and bid liquidity could lead to volatility in the absence of passive flows.
Skew also warned that if BTC fell below $67,000, it could trigger a liquidation cascade for late-long positions in the derivatives market.
Meanwhile, most of the buying pressure came from spot buyers on Binance and Bitfinex, particularly around the Wall Street open, mirroring the prior day’s activity.
Monitoring resource Material Indicators observed increased exposure among both large and small investors. “FireCharts binned CVD once again shows all order classes buying Bitcoin,” the platform shared with its X followers, noting that bid liquidity was stacking above $66,000, with $70,000 in sight.
Some traders were confident that sellers would capitulate, marking the return of a bull market. Crypto trader and analyst Michaël van de Poppe predicted that Bitcoin would hit a new all-time high within the next few weeks, stating, “The trend has switched… likely $90K before EOY.”
Interestingly, BTC gained alongside the U.S. dollar, breaking their usual inverse correlation. The U.S. Dollar Index (DXY) climbed to 103.45, its highest level since August 8, a day when Bitcoin also saw a major upside of nearly 12%.
Crypto asset manager Grayscale has filed with the United States Securities and Exchange Commission (SEC) to convert its $520 million multi-cryptocurrency fund into an exchange-traded fund (ETF).
On October 14, the New York Stock Exchange (NYSE), on Grayscale’s behalf, submitted a 19b-4 form to the SEC, requesting approval to convert Grayscale’s Digital Large Cap Fund into an ETF. This form asks the SEC to alter its rules to allow the listing of a new ETF.
Grayscale’s Digital Large Cap Fund manages over $524 million in assets. It is heavily weighted toward Bitcoin (76%), followed by Ether (18%), with the remaining allocation split between Solana, XRP, and Avalanche.
In an accompanying 8-K form, Grayscale notified its investors that the proposed changes from the NYSE would allow for the conversion to a spot ETF, making it easier for investors to buy and sell shares in the fund.
This latest filing comes after Grayscale successfully converted two major funds, the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE), into ETFs earlier this year. The SEC had previously rejected spot crypto ETF applications until an August court ruling favored Grayscale, prompting the regulator to reconsider.
Spot ETFs hold the underlying assets, unlike non-spot crypto funds, which rely on futures contracts. Spot ETFs simplify transactions for investors by removing added regulatory barriers.
Following these conversions, investors in Grayscale funds began selling their shares due to changes in the discount to net asset value (NAV). For instance, six months before the GBTC conversion, shares were trading at a 44% discount to the price of spot Bitcoin, according to YCharts. This discount disappeared after the conversion, leading to significant sell-offs.
Grayscale’s Bitcoin fund has seen $21 billion in outflows since its January conversion, while the Ethereum ETF has recorded $3 billion in outflows since July.
Additionally, on October 10, Grayscale added 35 altcoins, including Dogecoin and Worldcoin, to its list of assets “under consideration” for future investment products. The firm has also been actively launching new crypto funds, including an Aave investment fund in October, an XRP Trust in September, and an Avalanche fund in August.
Cryptocurrency investment products had another strong week, with Bitcoin leading the inflows, attracting $419 million.
From October 5 to October 11, digital asset investment products saw total inflows of $407 million, according to CoinShares’ Digital Asset Fund Flows Weekly Report, released on October 14. This marked a rebound after a minor sell-off of $127 million the previous week, which had followed stronger-than-expected U.S. economic data.
CoinShares’ head of research, James Butterfill, attributed the rise in crypto investment products last week to political factors, particularly the upcoming U.S. elections, rather than monetary policy shifts.
“This trend is evident in the fact that stronger-than-expected economic data had little impact on stemming outflows,” Butterfill explained. He added that factors like “polling toward the Republicans” provided an “immediate boost in inflows and prices.” He noted that Republicans are generally seen as more supportive of digital assets.
Bitcoin was the main beneficiary of the recent political developments, drawing in $419 million in inflows. In contrast, short-Bitcoin investment products saw outflows of $6.3 million.
Butterfill pointed out that Bitcoin’s price rose over 2% during the week, from $61,900 on October 6 to roughly $63,300 by October 12. He suggested the price surge likely fueled additional investment interest.
Additionally, blockchain equity exchange-traded funds (ETFs) experienced significant inflows, totaling $34 million, marking one of the largest weekly inflows for such products in 2024.
This increase came as U.S. election polls on October 10 suggested a potential shift in Senate control from the Democratic Party to the Republicans, which could influence the digital asset market due to the Republican Party’s perceived pro-crypto stance. The election will also decide the next U.S. president, with former President Donald Trump and Vice President Kamala Harris as the main candidates.
Publicly-listed asset management firm Samara Asset Group is aiming to boost its Bitcoin holdings using proceeds from a €30 million ($32.8 million) bond issuance.
Announced on October 14, Samara revealed that investment bank Pareto Securities would be leading fixed investor meetings to discuss the potential multi-million euro bond, which is intended to expand the firm’s investment portfolio.
Samara stated that “an up to €30 million senior secured Nordic bond may follow subject to, inter alia, market conditions.” Proceeds from the bond would be directed toward “additional limited partnership stakes” and investments in Bitcoin, which the firm considers its “primary treasury reserve asset.”
Samara’s CEO, Patrick Lowry, shared that the company has been holding Bitcoin “for years” and now seeks to further increase its Bitcoin treasury while investing in “disruptive tech through top managers and builders.” Lowry expressed his aspiration to accumulate Bitcoin, saying, “Not sure it’s possible, but it’d be a dream to stack as much as Michael Saylor,” referring to the MicroStrategy CEO whose company holds 244,800 BTC.
Currently, Samara has exposure to approximately 421 BTC, but Lowry aims to increase that significantly, with a goal of holding 1,000 BTC by the end of 2024. He noted that the size of Samara’s Bitcoin investment from the bond issuance would depend on the amount raised, stating, “Any assets that we raise that don’t deploy to the funds will be held in Bitcoin as a part of our core treasury management strategy.”
Samara invests not only in Bitcoin but also in funds and managers, as part of its mission to “advance humanity through technology,” Lowry added.
Co-founded in 2018 by Bitcoin advocate Mike Novogratz, Apeiron Investment Group, and Christian Angermayer’s family office, Samara Asset Group was formerly known as Cryptology Asset Group. The firm is based in Malta and listed on Germany’s Xetra electronic stock exchange. As of June, Samara’s net asset value stood at €189 million ($206 million).
Samara’s move to increase its Bitcoin position comes as Novogratz’s other firm, Galaxy Digital, is also expanding its BTC holdings. Data from Arkham Intelligence shows that Galaxy has purchased nearly 500 BTC since October 7, valued at $32.4 million according to CoinGecko.