Bitcoin has finally surpassed its previous all-time high of $64,895 and is now worth more than ever before.
The bitcoin bear market has been one of the most turbulent markets in recent history. From its start, there have always been people predicting that it will die. But, as July drew to a close, with prices at 55% retreat from their highs, many bears rejoiced.
Many market participants attribute the recent bullish price action to an anticipated ETF. The Bitcoin futures-backed BTC, BITO, has started trading on Wednesday, Oct. 20.
The ETF showcased one of the most significant debuts in volume traded on an opening day. It recorded nearly $1 billion. As Blockwork had earlier reported.
The approval of a Bitcoin ETF is not an exciting moment for the digital asset industry. It’s also important because it is symbolic. Jerome Powell has stated, “I have no intentions to ban” cryptocurrencies in the last month. And SEC chairman, Gary Gensler, said he “has no plans of banning crypto.”
One of the central reservations surrounding cryptocurrencies has been regulatory clarity. Yet, with a Bitcoin ETF on its way and SEC approval, there’s new hope for investors looking to dip their toes into this emerging market.
Ray Dalio, the founder of Bridgewater Associates, said, “At the end of day they’ll kill it” regarding bitcoin. But, with China’s recent crackdown on digital assets, industry players are urging legislators for a good approach. There is a feeling that the USA can position itself as a leader in this innovative industry like blockchain technology.
Bitcoin Market Structure
There is much less leverage in the market today than when BTC last traded at $60K. Futures’ open interest has yet to surpass all-time highs seen earlier this year. And although perpetual funding rates are racing higher, they’re not at the same levels as six months ago.
“The setup on BTC looks very similar to how it was at this time last year. Wherein the bellwether outperformed other Altcoins and posted a massive rally in Q4.” Delta Exchange CEO Pankaj Balani wrote to Blockworks. “We expect BTC to outperform other cryptos here and expect to see a 6 figure price on BTC before the end of this year.”
There’s been a correction in prices to wash out any excess leverage built upon the vitality of surpassing all-time highs. But it seems as if we’re just getting started. The data from within this market shows us there’ll be more upward momentum coming next leg higher.
On-chain analyst, Dylan LeClair, explains, “When the STH: LTH (short-term holders: long-term holders) realized price ratio is rising, it means that the cost basis of STHs is rising relative to LTHs. And conversely, when STH: LTH realized price ratio is decreasing, the cost basis of LTHs is increasing relative to the cost basis of STHs. This is extremely insightful, as the price of bitcoin rises when the marginal seller gets tired.