On Monday, BTC continued its recovery from the recent recession, and profit-taking in the popular cryptocurrency declined, with some experts pointing to the launch of the American Bitcoin-ETF as next major cryptocurrency catalyst.
Bitcoin at 40K$ to wait
After a low of $43,240 on Sunday, according to CoinMarketRate, Bitcoin did rise to about $49,631, which is 15% over 24 hours. Profits above $50K would be a positive signal.
Profit to Expended Products Ratio (SOPR), Glassnode’s measure, suggests traders were selling at a loss, indicating that recent profit-taking has been exhausted. In a bull market, negative SOPR proved to be a strong signal. Realized net loss is at its lowest level since April 2020, Glassnode said in a statement.
Once Bitcoin is restored, the next key driver of the popular cryptocurrency is likely to be fueled by additional institutional access with the launch of Bitcoin-ETF in the United States. Demand for it has grown in recent years and its ability to attract more cryptocurrency investment was proved just a few days ago when Canada’s first Bitcoin saw record inflows.
Previous attempts to launch Bitcoin-ETF in the US have not found support from US regulators. But with the new SEC chief coming to power, hope has been somewhat revived. Vaneck Associates applied to create a Bitcoin ETF last December.
“The ETF listing is likely to be the next big signal of progress in acceptance,” said Seamus Donohue, vice president of sales and business development at METACO.
“As we saw in recent ETF listings in Canada, within days they set records for asset infflows under management for new fund listings. In the United States, it will be transformative, and allow anyone with a brokerage account to access Bitcoins.”
On the other hand, it should be noted that Citigroup (NYSE) yesterday suggested that BTC could “become the preferred currency” for global trade thanks to wider proliferation. But cryptocurrency experts insist that Bitok is not a currency, but a digital commodity that can serve as a means of saving.
Citigroup, in its somewhat optimistic view of the VTS, however, is committed to making the asset a currency, including capital efficiency, insurance and storage, security and ESG considerations on mining Bitcoins.
Return of hope
Today Bitcoin is close to $50,000. At the time of writing, BTC is trading at $48,758. It currently records a daily gain of 8.19% or daily profit of $3,647.
March begins with an encouraging recovery. Bitcoin underwent a serious correction in the last week of February 2021, after reaching $58,300.
Historically, March has been more beneficial for bears. However, bulls can disprove the statistics of the current bull rally. The latter differs from 2017, which was rather supported by retail investors.
Bitcoin’s current bullish growth is associated with the entry of institutions to BTC markets. A massive arrival of retail investors is still expected.
By re-crossing the symbolic mark of 50K, the bulls will be able to restore euphoric sentiment in the markets, allowing BTC to re-attack their ATH. The current volatility of the crypto asset makes all scenarios possible: today it is on the hands of bears, tomorrow it will be under the sign of bulls.