The crypto market flipped neutral as Bitcoin [BTC] scaled an impressive rally this month. September can be marked as the month when a nation made Bitcoin its legal tender, on the other hand, TikTok and Twitter started using Ethereum [ETH]. However, the downtrend has been particularly damaging for several assets in the market that shed significant gains over the month.
However, the powerful jump managed to sweep the increasing sentiment of fear from the investors’ minds. As a matter of fact, the Crypto Fear & Greed Index was now exhibiting a neutral reading of 49, at the time of writing. But where is the market heading now?
Anticipation of Bitcoin ETF
Historically speaking, October has proved to be bullish for the king coin and, by extension, the cryptocurrency market. Yet another factor that could drive its price higher is the anticipation of Bitcoin exchange-traded funds [ETFs]. While the US Securities and Exchange Commission [SEC] has delayed the decision with regards to four Bitcoin ETFs, Bloomberg analyst Eric Balchunas’ prediction, about the authority rolling out one by the end of October, might still hold true.
Along with the pressure from the cryptocurrency community in the United States, to which SEC has mostly turned a blind eye, several countries have given a green signal to these products which put the regulatory entity in a tight position. While many believe that SEC would take a prudent step in the wake of enormous adoption, the ball still lies in its court. But Balchunas appears to be optimistic. His tweet regarding the same read,
“Yes, the SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under ’33 Act. The futures ETFs filed under the ’40 Act [which Genz loves] are very much alive and likely on schedule (we think 75% chance approved in Oct). Here’s our odds:”
The overall BTC market
Both technicals and fundamentals look fairly well. For instance, the BTC hash rate has been on a surge and was approaching ATH levels. To top that, the Open Interest [OI] and spot volumes also reflect a balanced picture. There’s moderate leverage in the market as the spot volume eclipsed the OI figures. Hence, a pullback in terms of the crypto-asset’s price action would not be as damaging as it was in the last two months.
The other way around, the market sentiment would become even more favorable if Bitcoin manages to soar higher.