1. Market Wrap: Analysts Expect Further Upside After Bitcoin Hits All-Time High
The “theme of $100K BTC” has returned, one analyst says.
Bitcoin rallied to an all-time high of around $66,000 on Wednesday, reversing a nearly 50% correction earlier this year. Traders remain optimistic and expect further upside across cryptocurrencies as the ProShares Bitcoin Strategy ETF (NYSE: BITO), the first U.S. bitcoin-linked exchange-traded fund, made its debut on Tuesday.
At this point, “short-term corrections outweigh the positive expectations for the final momentum of the BTC rally,” Alex Kuptsikevich, a senior analyst at FxPro told.
Further upside, however, could be limited if buyers fail to sustain the rally. Kuptsikevich warned that reaching a new high (or a series of highs) may provoke the “beginning of aggressive profit-taking by large investors who opened positions during the rebound from $30K.”
For now, in the bitcoin options market, traders are pricing in expectations for larger price moves.
“Implied volatility is creeping higher after spiking last week around the bitcoin ETF approval,” Gregoire Magadini, CEO of Genesis Volatility told.
“The theme of $100K BTC by end-of-year is back in vogue,” Magadini wrote.
Bitcoin (BTC): $66,087.65, +2.57%
Ether (ETH): $4,095.42, +6.88%
S&P 500: +0.37%
10-year Treasury yield closed at 1.654%, +0.02% percentage point
2. Australian Senate Committee Makes 12 Recommendations for Crypto Regulation
The committee hopes its recommendations will place the country on par with “leading jurisdictions” including Singapore and the U.K.
An Australian Senate Select Committee has submitted its final report on a year-long review of the country’s approach to crypto and blockchain regulation, seeking to guide, for the first time, a clear framework for the domestic digital assets sector.
The committee on “Australia as a Technology and Financial Centre,” which submitted its initial report in November 2020 and a second in April this year, tabled its third and final report Tuesday. The document outlines problems identified by leading industry participants and includes 12 recommendations for addressing issues as they relate to the lack of crypto and blockchain regulations in the country.
Cryptocurrency and blockchain technology regulation in Australia have often appeared fragmented and haphazard, attempting to apply decades-old laws to the nascent tech.
Taxation of cryptocurrencies for example, while considered capital gains, “unavoidably complicates” the establishment of crypto projects when compared to competing jurisdictions like Singapore that have “favorable income tax laws and do not have CGT,” the committee heard from one witness.
Liberal Party Sen. Andrew Bragg, who chairs the committee and is an outspoken supporter of digital asset innovation and regulation, said Australia would be competitive with Singapore, the U.K., and the U.S. in its approach to crypto and blockchain technology.
“Australia can be a leader in digital assets,” said Bragg. “This means Australians can access new choices and lower prices. It means Australians can have more control of their financial destiny rather than being dependent on endless intermediation.”
3. DCG, Facing Competition From Bitcoin ETFs, Plans to Buy More Grayscale Bitcoin Trust
The crypto conglomerate says it may buy up to $1 billion of subsidiary Grayscale’s flagship product.
Digital Currency Group is planning to hoover up to a billion dollars worth of Grayscale Bitcoin Trust (GBTC).
With subsidiary Grayscale’s flagship product facing sudden competition for brokerage accounts’ bitcoin dollars, the crypto conglomerate increased its GBTC buy range by $250 million, DCG announced Wednesday. It said it has bought $388 million shares of GBTC so far.
The authorization comes as bitcoin-curious mainstream investors look beyond Grayscale for crypto exposure. On Tuesday, ProShares, a Wall Street fund shop, launched the first bitcoin futures-linked exchange-traded fund (ETF) in the U.S. The ETF (NYSE: BITO) closed the day with $570 million in assets.
GBTC, meanwhile, ended Tuesday at a 16.55% discount relative to the price of bitcoin after that figure hit a five-month low of 20.5% on Monday. The trust has its own plans to become an ETF, a conversion unlikely to happen any time soon.
4. Bitcoin All-Time High Breakout Could Target $86K, Price Charts Suggest
The world’s largest cryptocurrency’s price has now fully recovered from a near 50% correction earlier this year.
Bitcoin’s (BTC) price made a fresh all-time high above $66,000 on Wednesday and could continue higher as bullish momentum improves, price-chart indicators suggest.
A successful breakout would require a daily close above $65,000, which would yield upside targets toward $74,000 and $86,000.
The price of the world’s largest cryptocurrency by market capitalization has fully recovered from a near 50% correction earlier this year, which stabilized around the $30,000 support level. Since then, buyers responded to oversold conditions and continued to accumulate long positions, anticipating the stock’s value will rise over time.
The next level of resistance is seen around $74,000, which could briefly stall the current rally. However, buyers will likely remain active above the $60,000-$65,000 support range given positive momentum signals on the weekly chart.
If support is held, BTC could see further upside toward $86,000, which is based on a measured move from the Oct. 1 breakout above the 200-day moving average.
The relative strength index (RSI) on the daily chart is the most overbought since February (current reading around 78), which preceded a brief price pullback. However, at that point, BTC continued to rally about 10% before hitting the April all-time high of $64,899, after which upside momentum slowed.
BTC will need to see continued buying pressure and a daily RSI reading above 50 to 60 to keep the current rally intact.
5. Coinbase and NBA Sign Partnership Deal
Another tie-up for the crypto-forward sports league.
Coinbase and the National Basketball Association (NBA) are teaming up on a multiyear partnership, the publicly traded crypto exchange said Tuesday.
The deal extends to the Women’s National Basketball Association (WNBA), NBA G League, NBA 2K League and USA Basketball.
“As part of the partnership, we will create interactive experiences to engage with the NBA and WNBA’s incredible community and athletes around the world,” Coinbase Chief Marketing Officer Kate Rouch said in a statement.
It’s another step into the crypto universe for the North American basketball league. A partnership deal with Dapper Labs on NBA Top Shot kicked off non-fungible token (NFT) mania earlier this year.
The NBA’s tie-up with Coinbase is reminiscent of Major League Baseball (MLB) inking a deal with crypto exchange FTX that went live in July.
A Coinbase spokesman said the exchange isn’t commenting beyond what’s in the release.
The news comes just a week after Coinbase announced the release of its own NFT marketplace, which currently has more than two million users on its waitlist.
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October 21, 2021