Retracting from its recent bullish run that broke yet another BTC all-time high, the asset today plunged well below $60,000 for the first time in 10 days.
Reacting to the excitement around the approval of the first American Bitcoin futures ETF, BTC went surging to $59,400 on 14th October. As the news of the SEC allowing the ProShares Bitcoin ETF to start trading hit the market, Bitcoin witnessed a growth of 4% within the time span of an hour. Taking the bullish run a step ahead, later in the month SEC went on approve the Valkyrie Bitcoin Strategy ETF, driving BTC straight to break another all-time high of $67,000 in 2021.
However, as the market went crashing into a sudden dip today, bitcoin plunged to fall by 6.6% in the last 24 hours. And as the price actions today work vigorously against the recent bull run, it certainly seems that the charming effects of the launch of the ETFs have started to fade off.
It’s no news that the growing crypto community has long anticipated a Bitcoin ETF making its debut in the United States, Bitcoin Futures ETFs are not exactly the same thing. And while that entirely makes sense, it didn’t stop the market to rejoice in a short-lived celebration, explaining the increased volatility in bitcoin’s trading value for the past month.
Simply put, Futures ETFs won’t be that favorable for general retail investors. Shares offered by Bitcoin Futures ETF won’t be backed by Bitcoin itself but would be rather tied with Bitcoin futures, which are basically contracted to purchase the asset at some time in the future. Thus, it is safe to assume that retail investors won’t be comfortable with complicated financial tools such as Futures ETFs which generally work well for professional investors and institutions.
So while bitcoin may have shouldered another ATH on the recent progress, it is still skeptical if Futures ETFs would actually play any significant role in driving the main steam adoption. However, despite the sudden plunge, technical indicators over the past week and analysts do suggest another break for BTC, stretching its value to a potential $90K.
According to the CEO and founder of Eight, Micheal van de Poppe, BTC seems to be making its way to $90K. In his recent tweet, van de Poppe clicked the next target for BTC at $90K, stating:
"So far, so good. #Bitcoin on the way to $90K"
After breaking ground to new highs last week, BTC took a 10% dip, however, this week was resonating with the idea that bitcoin is well in its trading flow. And while the expectations from bitcoin stay as high as the sky, October has been forecasted to conclude somewhere in the line of $63K.
According to TechDev, a popular analyst, Bitcoin is charting similar price action to that of 2017 with drastic accuracies. Resembling the market that carved one of its most iconic bull runs in the history of cryptocurrencies, Bitcoin is suggesting higher price levels before the end of the year.
Despite the volatility that swirled the crypto market around, especially BTC all the way to another ATH, Bitcoin driving into mainstream adoption would take more than Futures ETF to be triggered. Much beyond the bounds of technical indicators and analytical accuracies in predictions, inflation is still a biting concern. With the increasing rate of adoption of blockchain technology and cryptocurrencies, defi is on its way to altering the very foundation of centralized financial systems in leading economies.