Sunday, November 28, 2021

Bitcoin-related altcoins surge as BTC ETF rumors spread across the sector

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On Oct. 14, bulls flexed their muscular tissues and confirmed their intent to push the worth of Bitcoin (BTC) nearer to its $65,900 all-time excessive. One purpose for the transfer is the regular chatter about the potential of a Bitcoin exchange-traded fund (ETF) being permitted by the top of October. 

Knowledge from Cointelegraph Markets Pro and TradingView exhibits that after hitting a low of $54,103 on Oct. 13, the worth of Bitcoin rallied 8.2% to an intraday excessive of $58,532 on Oct. 14 because the ETF dialogue made recent rounds on Crypto Twitter.

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BTC/USDT 1-day chart. Supply: TradingView

The spike above $58,500 can also be vital as a result of it marks a 100% improve within the worth of BTC since bottoming at $29,193 on July 20, signaling a powerful restoration and rising demand.

Bitcoin’s worth efficiency can also be a sign that market individuals are again in accumulation mode, a reality that’s backed by knowledge from Glassnode displaying that the quantity of Bitcoin held in wallets of all sizes has been on the rise for the reason that worth briefly dipped beneath $29,000 in mid-June.

Bitcoin hodl waves. Supply: Glassnode

Badger DAO brings Bitcoin to DeFi

The rising worth and rising bullish sentiment surrounding Bitcoin have additionally helped carry additional consideration to Bitcoin-related initiatives that intention to facilitate its integration into the decentralized finance (DeFi) ecosystem and add sensible contract capabilities to the Bitcoin ecosystem.

One beneficiary is Badger DAO, a decentralized autonomous group centered on constructing merchandise and infrastructure round Bitcoin’s utility in DeFi.

Knowledge from and TradingView exhibits that since Oct. 1, the worth of its BADGER token surged 187% from a low of $15.69 to a every day excessive of $45.09 on Oct. 14 as its 24-hour buying and selling quantity elevated by 147% to $162 million.

BADGER/USDT 4-hour chart. Supply: TradingView

The surge within the worth of BADGER coincides with the token listing on crypto trade Coinbase Professional.

Associated: CME Bitcoin futures open interest hits 8-month high, greater than when BTC price was at $65K

Stacks brings sensible contracts to Bitcoin

One other Bitcoin-focused undertaking that has seen a bump in its token worth is Stacks, a layer-one blockchain answer aiming to carry sensible contracts and decentralized purposes to the Bitcoin community.

VORTECS™ knowledge from Cointelegraph Markets Pro started to detect a bullish outlook for Stacks’ STX coin on Oct. 11, previous to the current worth rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mix of knowledge factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. STX worth. Supply: Cointelegraph Markets Pro

As seen within the chart above, the VORTECS™ Rating for STX started to select up on Oct. 11 and reached a excessive of 82 round 5 hours earlier than the worth elevated 33% over the following two days.

Total, the continued discussions a couple of Bitcoin ETF proceed to assist drive hypothesis and worth motion throughout the crypto market, particularly for tokens related to the highest cryptocurrency. However a phrase of warning is warranted, as there’s nonetheless the chance that this might flip right into a buy-the-rumor, sell-the-news sort of occasion.

It’s additionally price noting that the potential of a Bitcoin ETF has been mentioned way back to 2013, and it was one of many driving forces behind the 2017–2018 bull cycle, so it will be sensible to attend for an official announcement from a regulatory physique earlier than assuming that the arrival of a BTC ETF is assured.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails danger, and you must conduct your individual analysis when making a choice.