Bitcoin went above $60k once again after a gap of about 5 months. The largest digital currency in the world recorded an all-time high of $64.5k back in April this year but has since seen its fortunes decline. Now, the cryptocurrency is flying high again after recovering to around $61.8k earlier in the day. Now, it is looking all set to challenge the highest levels set earlier in the year.
Bitcoin’s rise above $60k was in part fueled by speculation in the US media that the Securities and Exchange Commission (SEC) was about to greenlight the first fully fledged Bitcoin Exchange Traded Fund (ETF) in the country. Bloomberg reported an anonymous source confirming this move and showed that the crypto sector was expecting its first ETF soon and the SEC won’t get in the way.
The source said:
“The regulator isn’t likely to block the products from starting to trade next week.”
A futures related product is expected to be the first in the country to be approved. But, until that happens it is still a speculation and especially one promoted by Bloomberg that has a history of trying to manipulate BTC’s price index. So, investors and traders need to be careful while reading the news. There is also the added certainty that the SEC may reverse its decision to deal with the person who leaked the news and that might make BTC retract to its earlier steps.
Overall, the price index rose from around $57.5k to as high as as $51.9k during the last 24 hours. It started off slowly, first stabilizing around $59k before making a dash for the $60k resistance in the latter part of the day. At press time, it is hovering around $61.4k and looking set to challenge the $64.5k resistance ahead, which was the all-time high for the digital currency.
Image source: TradingView
If the ETF is indeed approved for the crypto sector in the coming days, it will be yet another price booster for the sector. The index is expected to breeze past $64.5k and then move on to bigger long-term targets like $80k and then $100k. However, if the ETF is rejected, a short-term price pullback to $60k or even below it can be expected easily. The long-term bull run, however, is still on the cards and will remain there unless key support levels at $55k and then $50k are breached.
Image Source: pixabay.com
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