Bitcoin (BTC) broke the $37,000 barrier this week, marking a price not seen in 18 months and spurring renewed optimism in the cryptocurrency market. The rally is widely seen as a response to growing excitement that the approval of the first Bitcoin Exchange Traded Fund (ETF) will happen soon, a move that could revolutionize the market.
Amid the optimism about Bitcoin ETFs, cryptocurrency experts are betting this could be the prelude “largest bull run in Bitcoin history”. The forecast is based on an analysis of historical indicators and market patterns.
A particularly notable sign is the rare appearance of the M-Chart, an indicator that has signaled significant appreciation in the past. Bitcoin surpassing the SMA 20 line further confirms this theory, suggesting that a convergence of factors could cause a historic rise in the cryptocurrency’s value.
This indicator shows a buy signal on the M chart of $BTCwhich has only happened once before and that was 8 YEARS ago.
At the same time $BTC also breaks above the SMA 20 line.
One reason why I think we are in the midst of the biggest bull run ever.
Settings are here. pic.twitter.com/4i7ulROUhp
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) November 10, 2023
“I don’t see any reason for the SEC to reject ETFs,” says Bloomberg analyst
The scenario is also reinforced by speculation about the impending approval of multiple Bitcoin ETFs, a development that Bloomberg analysts like James Seyffart and Eric Balchunas say could happen soon as the US Securities and Exchange Commission (SEC) is poised to make decisions to take. So next week November 17th.
The debate is heating up in light of a recent ruling by the DC Circuit Court of Appeals. In August, the court criticized the SEC for its measured approach “arbitrary and capricious” in rejecting Grayscale’s attempt to turn its Grayscale Bitcoin Trust into an ETF.
This decision highlights the potential unequal treatment between products like GBTC and Bitcoin futures ETFs, paving the way for a similar question regarding Ethereum.
At least seven Ethereum futures ETFs have launched in the past month, indicating growing interest in the sector. However, Balchunas notes that demand for these future products is subdued.
Furthermore, global demand for spot Ether ETFs is around 20% of demand for Bitcoin ETFs, which may prevent asset managers from rushing to develop these products.
Balchunas predicts that the approval of an Ethereum ETF will likely happen after the launch of a Bitcoin ETF, which could happen in mid-to-late 2024.
He emphasizes that despite the growing interest in Ethereum, many still do not fully understand the platform, unlike Bitcoin, which is often seen as ‘digital gold’.
However, despite the optimism, there is caution in the air, with some voices in the market suggesting that the approval of an ETF does not necessarily guarantee an increase in Bitcoin’s value.
Still, the current trend is positive and Bitcoin is trading above $37,000, with a modest but consistent increase throughout the week.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
