LUNA Outperforms Bitcoin’s Rally, Why It’s Ready For Massive Gains

Bulls are in control as Bitcoin and the crypto market break every all-time high, coming into the top 10 is Terra’s native cryptocurrency LUNA with a 12.9% rally in the daily chart. Trading north of $40, at press time, this cryptocurrency has outperformed BTC and major altcoins in lower timeframes. However, LUNA could be just firing up its engines and getting ready for a fresh leg-up in the short term. The Terra ecosystem has been implementing major improvements to its ecosystem in the past months. Related Reading | Why The Terra Ecosystem Delayed A Major Mainnet Upgrade For Late September Therefore, LUNA could have multiple bullish reasons to continue to outperform the market. As researcher Ryan Watkins recently indicated, Terra is closed to implementing all 3 massive upgrades on its infrastructure. The Colombus-5 and Wormhole V2 upgrades have gone live, and the Inter-Blockchain Communication (IBC) protocol upgrade is set to roll out today, October 20th. As NewsBTC reported in August, Columbus-5 was delayed providing every actor on the Terra ecosystem with more time to prepare for the upgrade. Designed to introduce a deflationary mechanism for LUNA, this upgrade will increase Terra’s interoperable capabilities while creating more demand for its underlying asset. In the meantime, the Wormhole upgrade will operate as the communication component between Terra, Ethereum, Solana, Binance Smart Chain, and potentially more blockchains in the future. Related Reading | Why Terra (LUNA) Will Reward Users With New Community Bounty Program In addition, the upgrade introduced a user interface that will remove friction between the network value transfer capacity. Finally, the IBC protocol will allow Terra to benefit from “permissionless trans of tokens across chains”. The team behind Wormhole celebrated the achievement: Terra is known for its vibrant ecosystem, #LUNAtic community, and its decentralized stablecoin, $UST. Terra has grown at a dramatic rate in recent months, and we’re excited to unleash Terra innovation on the SOL, ETH, and BSC communities! LUNA Ready For Take-Off? Bull Market In Its Early Days Historically, tokens with interoperable capacities have performed well. Binance Smart Chain token BNB, integrated with its own burn mechanism, went from a low below $30 in 2020 to an all-time high above $600 on the back of its CeDeFi utility. Related Reading | Can LUNA Reach $170? This VC Fund Thinks It Has The Fundamentals Terra has another secrete weapon in its stablecoin UST. Talking about recent developments, Watkins claimed that the Terra ecosystem has built the potential for a new cross-chain trade boom. In September, the researcher made the following prediction: With Colombus-5 and Wormhole V2 going live in the coming weeks, UST growth will likely accelerate, setting it up to challenge DAI for the top spot among decentralized stablecoins. As seen in the chart below, Terra’s native UST has taken the decentralized stablecoin market by storm. Since February 2021, its dominance over this sector has skyrocketed and seems poised to continue the trend with an upgraded ecosystem. As Watkins pointed out, there are two main trends that will allow UST and Terra to grow: new capital coming into the ecosystem due to the upgrades, UST moving onto new platforms. In totality these catalysts could all drive a ton of new demand for UST in the coming months, which has already been the fastest growing decentralized stablecoin in 2021. — Ryan Watkins (@RyanWatkins_) September 15, 2021

Ethereum Breaks $4,000, All-Time High Unavoidable?

The Ethereum rally continues and seems to be moving into FOMO levels. At press time, the second crypto by market cap has blasted through the major resistance at $4,000 and moves fast into price discovery. Related Reading | Ethereum Looks Set To Explode As 400,000 ETH Exits Coinbase Ethereum records 4% and 14% in the daily and weekly charts, respectively. The euphoria in the market seems to be driven by the launch of a Bitcoin-linked ETF in the U.S. The market has positively responded to this event and has allowed Ethereum and Bitcoin’s price to surge with a spike in institutional demand, as several experts have pointed out. Unlike some predictions, the ETF event doesn’t seem to be operating as a “Buy the rumor, sell the news” or a trigger for another capitulation event. In lower timeframes, Ethereum must hold above current levels to turn $4,000 into support and allow the rally to follow through in case of potential downside risk. As pointed out by pseudonym analyst John Wick, Ethereum entered a “volatility squeeze shading” with a bullish trend, as indicated in the image below. The analyst added: Squeeze shadings precede violent moves that are often the start of new trends. Green bars say probability to the upside! In that sense, losing the $3,000 area could signal a potential trend reversal to the downside. However, the second cryptocurrency by market cap could make a 5x profit from here. Related Reading | Ethereum Supply Shock Grows As Reserves Decrease, ETH 2.0 Contract Increases Ethereum ETF On The Way, Bulls With More Ammo In-Store Analyst Justin Bennett believes the key for more upside actions relies on Bitcoin. If the benchmark crypto can continue its upwards trend uninterrupted, Ethereum could follow right into its May trend line, as the analyst claimed. This could send Ethereum as high as $20,000 for 2022. In support of this theory, QCP Capital recorded an increase in ETH-based options with $10,000 to $50,000 strikes to be expired by March 2022 on the rise. Related Reading | TA: Ethereum Breaking This Barrier Could Spark a Significant Surge With the launch of the Bitcoin ETF, QCP Capital noted the following on the future of Ethereum: As we mentioned in our previous post on ETFs, long-term attention seems to be shifting from BTC to ETH with potential ETH ETF release after BTC, coupled with ETH V2 catalyst.

Buyer Beware: Extreme Greed Is Back In Bitcoin And Crypto

Bitcoin rallies as the first Exchange Traded Fund (ETF) launched by ProShares debuted in the NYSE. The first cryptocurrency by market cap trades at $62,908 with 2% and 9.5% profits in the daily and weekly charts, respectively. The general sentiment in the market flipped bullish as October made its entry, historically a green month for Bitcoin. Traders and operators seem to expect a fresh all-time high in the near term driven by fresh capital coming into the market via the BTC ETF. Related Reading | TA: Bitcoin Consolidates Gain: What Could Trigger Fresh Rally At press time, ProShares’ product has seen a $280 million in trading volume. Senior ETF analyst for Bloomberg Intelligence Eric Balchunas claims this makes the Bitcoin ETF part of the top 15 at opening day in terms of trading volume with the potential to become number one if it surpasses $1 billion during the day. The Fear and Greed indicators have moved to the upside as a consequence of recent events and Bitcoin’s performance. Per an Arcane Research report, The Fear and Greed Index signaled “extreme greed” for the past two weeks. Related Reading | The On-Chain Metric That Says Bitcoin Is About To Go “Parabolic” This indicator usually fluctuates at high levels when the crypto market hypes over an event, such as the debut of exchange Coinbase on the public market. In addition, Arcane Research claims Bitcoin experienced a similar phenomenon in 2020 when the bull-run to $64,500 began. As a potential positive signal for the bulls, on-chain activity seems to be on the rise as shown by the slight increase in transaction fees on the BTC network. As NewsBTC reported, experts believe this suggests institutional demand for the digital asset is returning. Bitcoin Sees Increase In Demand, More Upside Imminent? In support of this theory, Arcane Research records a climb in BTC spot volume. As seen below, this metric saw a sharp decline in May and July, as BTC’s price kept on falling. It started to recover by August and has continued to trend upwards. Related Reading | Bitcoin Price Smashes Record For Highest Weekly Candle Close Ever BTC’s trading volume stood at $7.2 billion during October’s second week with the 15th of this month recording a $12 billion intraday volume, Arcane said, the biggest in the past 6 months. The firm said: The same day, the bitcoin price increased by 7.6%, showing how the biggest daily volumes coincided with the most significant increases in the price. These developments signal a renewed interest in bitcoin after a sleepy summer. In the short term, traders could see a rise in volatility due to the BTC ETF effect on the market. The derivatives sector seems to be getting overheated with the Open Interest (OI) points to an uptick in leverage positions. 2/ OI in BTC futures is nearing its all-time high. OI growth reflects an increase in leverage. However, when the price of an asset is increasing, OI measured in USD is bound to go up. FTX, Binance, Bitfinex, and CME all hit their highest level of OI in the last few days. — Delphi Digital (@Delphi_Digital) October 18, 2021 As with the Coinbase debut, too much leverage could lead to a liquidation-driven short squeeze. Whether it will favor the bulls or bears, that remains to be seen.

El Salvador Disables Bitcoin Price On Chivo App To Stop Scalpers

Bitcoin traders have found a way to use the recently launch Chivo App, the countries own BTC wallet, by El Salvador’s government to make a profit. As part of their BTC Law, this app operates with the second layer payment solution lightning network. Related Reading | Bitcoin Price Smashes Record For Highest Weekly Candle Close Ever Via its official Twitter handle Chivo Wallet announced that Salvadorans will be unable to track the price of BTC on the app. According to the report presented by the team behind the app, some users have been using it to do “scalping”. A type of short-term trading modality, scalping is performed by an operator to take advantage of an asset’s price fluctuations in low timeframes. In previous versions, the app allowed users to “freeze” the price of Bitcoin giving traders an edge to perform this practice by comparing it to exchange rates. The Chivo Wallet allows users to move Bitcoin via the lightning network to other Chivo users or external BTC wallets. Thus, traders can make a profit by scalping the app’s BTC price. The team behind the app clarified the following on the reasons for the decision: The “scalping” performed consisted of taking advantage of Chivo keeping the rate frozen for 1 minute and taking advantage of that minute to compare the rate with other exchanges and see if the Bitcoin price went down or up. In the future, the price of Bitcoin will have limited visibility to prevent these operators from accessing what the team called “an unlimited source of money”. The app will not ban trading itself, just the capacity to “freeze” BTC’s price on the platform. Related Reading | Number Of Bitcoin Whales On The Rise As BTC Chases New All-Time High Salvadorans Will Have New Functionalities On Their Bitcoin Wallet On the contrary, the team behind Chivo claimed that is working on adding a trading feature for the wallet. In the future, the app will let these operators trade with Bitcoin with any modality, but with the asset’s price display in real-time. However, Salvadorans can already profit from BTC exposure. Since the wallet was launched, when the government gave citizens a $30 bonus in the cryptocurrency, Bitcoin has increased its value by over 30%. Upon launch, El Salvador and its president Nayib Bukele surely underestimated or failed to consider crypto traders’ capacity to leverage a situation for their benefit. It remains to be seen whether disabling Bitcoin’s price from the app will effectively stop scalpers. Related Reading | TA: Bitcoin Gearing For Lift-Off to $65K: Rally Isn’t Over Yet At the time of writing, Bitcoin trades at $$61,980 with a 1% profit in the daily and a 13.3% profit in the weekly charts, respectively. BTC’s price remains in a rally and it’s near $64,500, its all-time high.

The On-Chain Metric That Says Bitcoin Is About To Go “Parabolic”

After closing its best highest week since its inception, the bulls remain in control of the price of Bitcoin. At press time, BTC’s price trade at $61,386 with a 3.8% profit in the daily and a 12.3% profit in the weekly chart. In the crypto top 10, only Dogecoin (DOGE) and Binance Coin (BNB) have outperformed Bitcoin as this asset’s dominance over the crypto market continues to rise. Related Reading | Bitcoin Price Smashes Record For Highest Weekly Candle Close Ever The general sentiment amongst traders and operators seems bullish with potential FOMO coming in the coming weeks if Bitcoin can score a new all time high beyond $64,500. In that sense, research firm Santiment records no spike in BTC’s Weighted Social Sentiment, a metric used to track social media and measure market sentiment. As seen below, this metric stands almost flat as Bitcoin reclaims previous highs. As the chart suggest, there seems to be a correlation between Bitcoin and its social media sentiment. When the metric experiences sudden spikes, BTC’s price trends to the downside most likely driven by short-term investors that enter the crypto market to make a quick profit. Related Reading | Number Of Bitcoin Whales On The Rise As BTC Chases New All-Time High Lately, the correlation has inverse as Bitcoin moves higher, its Weighted Social Sentiment trend lower. Santiment noted the following: (…) traders are showing a surprisingly low level of excitement. With euphoric commentary being tempered, it’s a good sign that prices can break records in the near future without #FOMO halting momentum. Bitcoin Loaded With Rocket Fuel On the possibility of BTC’s price returning into uncharted territory, Charles Edwards, founder at Capriole Investments, reiterated his bullish stance. As NewsBTC reported, two months ago when Bitcoin was trading at $45,000, Edwards reported that his Hash Ribbons indicator went bullish. Used to track BTC miner activity, this indicator flashes a buy signal when a capitulation event has concluded leading into a rally. On this occasion, Edwards showed the Market Value to Realized Value (MVRV) indicator, a metric used to measure if BTC’s price is at under or over value, has reached 3.0. As seen below, when Bitcoin’s MVRV stands at these levels, it has usually followed with a rally. In 2013 and 2017, the chart indicates, BTC’s price reached its all-time high prices in the coming months after the metric entered its current levels. In the short term, bulls could face some headwind as the derivatives sector start to heat up. Analyst Ali Martinez records a 5-month high in BTC Futures Open Interest standing at $22 billion. Related Reading | TA: Bitcoin Gearing For Lift-Off to $65K: Rally Isn’t Over Yet In addition, on-chain activity declining in combination with a 98.34% of BTC’s total supply at unrealized profit suggest potential downside risk, as Martinez added.

Bitcoin ETF Check, What’s Next For BTC

The approval of a Bitcoin Exchange Traded Fund (ETF) in the U.S. has come true. Different actors in the crypto space have tried to receive the greenlight from that country’s regulator (SEC) for little less than a decade. Related Reading | Bitcoin ETF Receives Approval from SEC, Marking Historic Day for Crypto Major achievement for the crypto industry, there is a sensation of euphoria in the market with Bitcoin reaching a 24-hour high of around $63,000. There has been some retracement since that peak, but BTC’s price continues to trade north of $61,000, at the time of writing. Investment firm QCP Capital commented on the BTC ETF approval. As reported by NewsBTC, the investment products will track the Chicago Mercantile Exchange (CME) Bitcoin futures. Thus, some have argued that it’ll be a poorly execute product to benefit Wall Street and institutions. QCP Capital said: The approval of a Bitcoin ETF is a positive development. Whatever the case may be, a progressive step from the regulator is good for Bitcoin and the cryptocurrency market at large. Opposite to the opinion of those against the Bitcoin ETF approval, QCP Capital believes this product will “sideline institutional” investors due to its characteristics. Thus, the U.S. retail sector could become the predominant player. Related Reading | Bitcoin “Supertrend” Begins As Buy Signals Stack On All Major Timeframes A BTC ETF based on CME futures will most likely trade at a premium related to Bitcoin’s spot price. Therefore, institutional investors could have little incentive to trade this investment product in step of simply buying CME contracts.  QCP Capital said: We are not sure if these futures-based ETFs will be able to draw enough new money to trigger an exponential move higher like the one we saw in Q4 2020. The market could experience a new inflow of capital, as expected from traders and operators, as investors move “out of Gold ETFs into Bitcoin”. It remains to be seen if this move will be able to sustain a rally. After The Bitcoin ETF, Is Ethereum Next In Line? In addition to the potential lack of sufficient flows to hold BTC’s current levels, operators seem to have price in the Bitcoin ETF approval, QCP Capital added. There have been rumors going around for the past two weeks with the SEC Chair himself Gary Gensler hinting at this positive possibility. This could contribute with a potential retracement and trigger a “buy the rumor, sell the news event”. In the future, QCP Capital expects an Ethereum ETF with similar characteristics to be approved as the CME offers ETH based products. The firm said: (…) this also means that until other coins have a futures contract, the US will only be limited to Bitcoin and Ethereum ETFs for the time being. Other variables might come in to play to change market dynamics: a growth in CME BTC futures trading volume, a focus on other crypto related issues, the firm said, the increase in Bitcoin based instruments to generate yield. However, one of the most important variables might be the potential decline in the Grayscale Bitcoin Trust (GBTC). A favorite tool amongst institutions to gain BTC exposure, an ETF could render it obsolete. Thus, the crypto market could face some uncertainty. Related Reading | Bitcoin Returns To $60K, What’s Holding Off From New ATHs? As seen below, the GBTC has been trading at an important discount since March 2021. QCP Capital added the following: What could happen for GBTC in the future is a possible takeover and delisting. We are not sure what market impact this might have but it would be worth keeping an eye on what happens with the largest private Bitcoins treasury with 680,000 BTC.

Jack Dorsey: Square Could Build Bitcoin Mining System

CEO of financial services company Square Jack Dorsey could take another step further into expanding the Bitcoin ecosystem. Via his Twitter account, Dorsey announced that the company is currently “considering” the possibility of creating a BTC mining system. Related Reading | Square’s Cash App Reports $2.7B In Quarterly Bitcoin Revenue, A 200% Jump A known Bitcoin bull, Dorsey has been exploring the sector throughout 2021 with important partnerships created with Ark’s Cathie Wood. As NewsBTC reported, the partners proposed an alternative driven system to support a renewable energy grid with Bitcoin miners. Now, Square could be based their mining system on “custom silicon and open source for individuals and businesses worldwide”, the announcement said. Dorsey clarified that the mining system could track its hardware wallet model. In August, the company revealed a new project to build a decentralized exchange to facilitate Bitcoin peer-to-peer trading alongside a hardware wallet. Similar to today’s announcement, the company emphasized the need to collaborate with the community and the ecosystem to benefit the project and the network. Dorsey made some reflections on the nature of mining and: Mining needs to be more distributed. The core job of a miner is to securely settle transactions without the need for trusted 3rd parties. This is critical well after the last bitcoin is mined. The more decentralized this is, the more resilient the Bitcoin network becomes. In that sense, the CEO of Square believes Bitcoin mining needs to be “more efficient” and to continue to move towards clean energy. Related Reading | Why Square Will Create New Bitcoin-Focused Company, According To CEO Jack Dorsey As stated in the aforementioned Whitepaper, BTC mining could be used to create and support an alternative energy system. Dorsey believes BTC and its network are a potential source of innovation for the renewable energy dilemma. Square To Work On Bitcoin Mining For The Mainstream Therefore, Square wants to make Bitcoin mining more accessible to everyone in order to resolve the issues around Silicon design and vertical integration in the energy sector. Dorsey said: Mining isn’t accessible to everyone. Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves. What are the biggest barriers for people running miners? The CEO of Square said Jessi Dorogusker will lead a team to research the technical requirements to undertake the project with Afshin Rezayee and Thomas Templeton. Dorogusker said: We will incubate the Bitcoin mining system project inside Square’s hardware team, starting with architecture, design, and prototyping of more efficient silicon, hashing algorithms, and power architectures. At the time of writing, Bitcoin trades at $61,945 with a 7% and 16.1% profit in the daily and weekly charts, respectively.

Bitcoin Returns To $60K, What’s Holding Off From New ATHs?

At the time of writing, Bitcoin has smashed its way through the $60,000 resistance and seems ready to take on new highs. The first cryptocurrency by market cap records a 11.6% and 4.2% profit in the weekly and daily charts, respectively. Pseudonym analyst Pentoshi expects Bitcoin to entered uncharted territory in the near future. As he pointed out, BTC’s price was capable of breaking out of its macro low high by forming a new trend. Related Reading | TA: Bitcoin Key Indicators Suggest Upside Continuation To $62K As seen below, Bitcoin has created an important support at the $50,000 levels with a two potential targets for Q4, 2021. The first located at $70,000 and the second at $85,000. $BTC key noteHas now taken out the MACRO LH from when it topped and started it’s LL + LH. While forming a new trend of HH + HL It’s only a matter of time before ath’s w/ this structure — Pentoshi Won’t Dm You. hates Dm’s. DM’s are scams (@Pentosh1) October 15, 2021 Bitcoin Gets Stronger As The Bulls Take Over Data provided by analyst William Clemente in a report by Blockware Intelligence paints a bullish picture for Bitcoin. Less than 1% of BTC’s supply has been move above current levels. Therefore, the report claims there is “very little resistance or overhead supply to the upside”. The Bitcoin Entity-Adjusted Spent Output Profit Ratio (SPOR), a metric used to measure realized profit and loss for holders, sits well above 1. As seen below, the last time this metric stood above 1 or higher was during April 2021 when Bitcoin was trading in its all-time high of $64,500. There is some significant movement in the derivatives sector with the potential approval of a BTC Exchange Traded Fund (ETF) in the U.S. As reported by NewsBTC, this possibility is one of the reason the market has flipped bullish. Related Reading | Bitcoin Futures ETF Is Coming, No SEC Opposition The report expects that the BTC ETF approval to create new opportunities for institutional investors to enter the crypto market, suggesting fresh capital coming in, to take a “non-directional position in the Bitcoin market”. Thus, institutions will be able to profit from the arbitrage created between the spot and futures market.  In addition, the Futures Annualized Rolling Basis indicates more upside pressure, as the report said: This means less convexity to the downside and shorts are more likely to be squeezed as they no longer have an inadvertent hedge via their collateral. I suspect that this will reverse once breaking all time highs but we’ll keep an eye on it. Bitcoin Whales Drive The Trend On-chain activity has followed the bullish momentum in Bitcoin with an increased in large transactions and trading volume over the past 30-days. A quick look at explorer shows a rise in transactions fees over the past 24 hours. Related Reading | Why Bitcoin Could Extend Its Market Dominance As It Approaches $60K However, as the analyst said, whales are dominating the market as suggested by the lack of rise in google searches related to cryptocurrencies and on-chain metrics, the report said: (…) we’ve actually seen the 100-1K cohort offset their selling by over 1,000 BTC in that time period. Overall, conclusion is that large buyers have indeed been active in the market

How Stellar’s $40M Investment In Tala Will Give Millions Access To Financial Services

The Stellar Development Foundation (SDF) has made a fresh bet on the financial services sector. According to a press release, the institution participated in a $145 million series E for Tala. A global technology company working on providing millions of people with access to lend, borrow, and other financial services Tala reached an over $350 million funding with support from the SDF and its Enterprise Fund, Upstart, and others. Related Reading | Stellar Network To Power New Savings API Launched By Wyre Launch in 2020, the SDF’s Enterprise Fund provides support, in U.S. dollar or XLM, to payments companies with a cross-border approach, companies that provide financial inclusions in emerging markets, access to tokenized assets, and other criteria. The fund was launch with the objective of investing in companies capable of bringing real world use case and contribute with the Stellar ecosystem. Tala will use the funds to create a crypto product to attract mass adoption especially oriented to developing countries. In these countries, over 3 billion people lack options to participate in the global financial sector. Thus, Tala will leverage cryptocurrencies, mobile technology, and data science to provide people with tools to increment their wealth and achieve economic independence. Related Reading | Stellar To Introduce AMM Functionality, What This Means For Its Ecosystem Denelle Dixon, CEO and Executive Director for the Stellar Development Foundation, claimed that their investment in Tala represents their confidence in the company’s potential. Dixon added: Joining forces with Tala to improve access to financial services for millions of people in emerging markets is exactly aligned with our mission at Stellar Development Foundation. Since the Stellar network leverages interoperability with the world’s existing financial systems, Stellar and Tala technology together are a powerful tool to bridge gaps for those who have been left out. Stellar New Partnership And A Future Of Financial Inclusion The CEO and Founder of Tala Shivani Siroya said the following on their progress over the past years, trying to improve the traditional financial system, and their future: This new investment will accelerate our path to becoming the primary financial account for the global underbanked and helping millions more people make progress in their financial lives. Paul Gu and Denelle Dixon are visionary leaders who share our commitment to building a financial system that works for everyone and we are thrilled to welcome them to the team. The Co-Found and Head of Product at Upstart Paul Gu claimed that Tala has begun to solve one of the most important issues for consumers in the developing world by providing with access to financial services. Gu said: Upstart shares Tala’s belief that technology is the key to unlock access for the underserved, and we’re excited to support them in serving the next 1 billion people entering the financial system. As NewsBTC reported yesterday, Stellar has been making relevant developments, getting major partners such as payment giant MoneyGram, and investments in 2021. This network ecosystem seems to be growing as the year ends. This has translated into positive performance for Stellar’s native asset XLM. Over the past 2 weeks, this cryptocurrency has been one of the best performing assets in the crypto top 25 with a 35.7% profit. Related Reading | Stellar Development Foundation Takes Part In Abra $55 Million Series C Funding In lower timeframes, as Bitcoin (BTC), Ethereum (ETH), and the rest of the cryptocurrencies in the top 10 move sideways, XLM records a 2% and 3.5% profit in the daily and weekly charts, respectively.

Why Bitcoin Could Extend Its Market Dominance As It Approaches $60K

Bitcoin is moving with conviction to the $60,000 area. At the time of writing, BTC’s price trades at $57,681 with a 4% profit in the weekly and daily charts. The general sentiment in the market remains bullish as Bitcoin has been able to shake off the bears over the past days. Traders and savvy investors have called BTC’s recent price action the beginning of the “Bitcoin Season”. Related Reading | TA: Bitcoin Starts Fresh Rally To $60K, What Could Fuel More Upsides During this period, BTC takes over the spotlight and rallies absorbing capital from other cryptocurrencies. As a consequence, the Bitcoin Dominance trends to the upside as it has since mid-September standing at a 44.65% of the entire crypto market. This metric stands far from its pre-crash levels but could continue to increase in the coming days suggesting more appreciation for Bitcoin. In a report QCP Capital emphasized the importance of a potential BTC-based Exchange Traded Fund (ETF) in the United States. This event is most likely driven the current bullish price action impacting the crypto market. The U.S. Securities and Exchange Commission (SEC) has postponed the decision to approve or reject, their usual decision in the past, a Bitcoin ETF until next week. The market seems to be positioning towards an approval on the back of certain statements made by the SEC Chair Gary Gensler. The regulator claimed that it’ll be more inclined to approve a Bitcoin ETF based on Chicago Mercantile Exchange (CME) futures. Related Reading | Why Bitcoin Could Be Far From $100,000, Says Fidelity Analyst QCP Capital explained the effect of these claims in the market: Funding and forwards have also been heating up over the last two weeks since SEC chair Gensler made favourable comments about a futures-based BTC ETF. Perpetual swap funding went from slightly negative in the end of September to around 20% now. Bitcoin At A Crossroads, Fresh Capital Price In ETF Decision Further data provided by QCP Capital showed that institutional investors have entered the market after pricing in a potential Bitcoin ETF approval. As seen below, the CME futures premium as trend upwards especially after Gensler made its optimist comments. In that sense, the SEC’s decision could trigger two of the following scenarios for Bitcoin. In the bullish scenario, the ETF approval will drive a new wave of institutional demand for BTC, QCP Capital expects. In a second scenario, Bitcoin will face another “buy the rumor, sells the news” event with potential for more downside and a retest of its support levels. Related Reading | Bitcoin Price Prepares To Blast Off Back Into RSI “Bull Zone” As seen below, QCP Capital highlighted the dynamic in the BTC Options markets with the “front-end risk reversals” tending downside. This suggests a lot of uncertainty amongst investors and a “prevailing downside nervousness”. The firm said: Direction-wise for BTC, we find ourselves with a bullish bias but unable to form a strong bullish conviction in spite of the clear optimism in the market. The firm has set its target on Monday, next week. If the event is to favor the bears, it is possible that the weekend price action might reveal what’s to come in the following days. QCP Capital said: A lot hinges on the Pro-shares ETF decision on Monday, with their application being the first and widely expected to get approval. As the ETF decisions are underway, we expect BTC to remain the focus of the crypto market.