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Yesterday, Bitcoin recorded a new 52-week high reaching $34,900.
While BTC led the way, other major cryptocurrencies had a great day as well.
ETH at $1,770 (7d +13.3%)
SOL at $30.03 (7d +24.4%)
MATIC at $0.62 (7d +19.2%)
LINK at $10.04 (7d +37.1%)
OP at $1.37 (7d +14.6%)
ARB at $0.88 (7d +12%)
IMX at $0.63 (7d +17%)
Sentiment has shifted and everyone is calling crypto to the moon.
So naturally the question on our mind - is this the real beginning of the next cycle?
And what caused this pump?
Before we answer these questions, weāve got to take a second to pump our own tires. Weāre not here to gloat but we called this one and it feels so good to be right.
On Oct 12, I posted in the Web3 Academy PRO members Discord channel that my spidey senses were telling me something good was coming.
Then on Oct 19, I wrote a PRO report breaking down the current market situation and why I felt things were setting up for a pump.
Now Iām not perfect, and I wonāt always be right but had you purchased BTC on Oct 13 you would be up 21.2% right now, and had you purchased on Oct 19 youād be up 16.2%.
Make sure you donāt miss out on my next prediction. Go PRO today.
Now I want to make sure you understand exactly whatās going on, so today weāre going to discuss:
What are the major events causing this price pump?
What factors are impacting prices?
Whatās likely to happen next?
Letās get into it. ā¬
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ETF Speculation Drives Crypto Rally
There's a notable amount of optimism circulating around the potential approval of a Bitcoin spot ETF.
On Monday, the BlackRock iShares Bitcoin Trust was listed on the DTCC (Depository Trust & Clearing Corporation), which clears NASDAQ trades.
It even received a ticker symbol ($IBTC), which has led many to believe that the approval is now a matter of "when," not "if".
And that "when" could be right around the corner.
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There was so much traffic on the DTCC website on Tuesday that it crashed. Further demonstrating the number of people and institutions that are closely watching BTC.
We also know that recently both BlackRock and Fidelity made amendments to their spot Bitcoin ETF submissions.
Additionally, Grayscale has submitted an S-3 filing with the SEC with plans to list shares of the Grayscale Bitcoin Trust on the NYSE Arca as part of its endeavor to transition the trust into a spot Bitcoin ETF.
Furthermore, JPMorgan hinted at the likelihood of the SEC approving a spot ETF in the coming months as the deadline for the Ark 21Shares applications nears.
This speculation is also bolstered by reports suggesting that Hong Kong has altered its stance on a potential spot ETF for cryptocurrenciesā.
But the ETF isnāt the only event impacting crypto prices. Let's see what else is going on.
SBF Trial Update with Carly Reilly
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Other Factors Causing Crypto Prices to Rise
Market Sentiment
The general sentiment in the cryptocurrency market has shifted quickly which can have a significant influence on Bitcoin's price.
Everyone has fomo when they see a 10% pump and they want to get in on the action.
As a result market sentiment for crypto has pushed into Greed.
When we make such a big move into the greedy category that usually means itās time for a market pause or a small pull back. Weāll be on the watch for that.
Institutional Interest
Increased interest and investments from institutional players can also be driving the price up. The recent moves by BlackRock, Fidelity, and Grayscale indicate a growing institutional interest in Bitcoinā.
Weāve also seen 3 weeks in a row of positive flow into the crypto markets.
Macro Economic Factors
The market might be smelling that the worst is behind us in terms of macro and weāre starting to see the light at the end of the tunnel.
This is still not consensus, but thatās my base case and one of the reasons I started to make the call that the market is ready for the next leg up.
I donāt think that influenced this move up though since tech stocks went the opposite way during this crypto pump.
So I think this pump is mainly about the ETF. But the macro factors should push crypto higher into the end of the year.
Liquidations
As Bitcoin pumped, a whopping $310 million in shorts were liquidated.
Short liquidations usually boost the price of an asset because they cause forced buying in a rising market.
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Wrapping Up š§µ What happens next?
As I said at the beginning of this newsletter, Iāve been seeing the markets set up for this price action.
So much so that Iāve been sounding the alarm in our community for a few weeks.
If you want to fully understand my reasoning, I highly recommend you read our PRO report from last week where I walk you through 30 charts and explain why Iām so bullish on the crypto markets right now.
Now the question on everyoneās mind, is this the start of the next bull cycle?
Honestly, itās way too early to tell. But certainly things are heading in the right direction.
And itās clear that a BTC Spot ETF approval would likely cause another big pump.
Even though I keep expecting that it would be priced into the market, all the signs keep telling me that itās not.
Everyone is feeling very bullish right now, and a lot of people think weāre going to $50k BTC.
But in order for that to happen, we first need to see more money flowing into crypto.
Right now, it still feels like weāre seeing money move from altcoins to BTC.
We need another leg up here soon to confirm that it's "go-time" for crypto.
I think we will get it before EOY.
Question...
Did you buy any crypto in the past month because weāve been telling you to?
Reply to this email with a Yes/No!
Thanks for reading. And remember, you're strong, youāre powerful, youāre alpha! ā¤
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Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.
