In a market where nothing is impossible and every little hint drives significant movement, eyes are focused on the recent price knock of Bitcoin at $28.5K. As an exhilarating start to the October, experts, however, show a sense of reservation, stating Bitcoin holds a smell of disbelief even amidst the fervent love from market participants.
One perspective to consider is a phenomenon known as the “upside wick” fakeout. Sharing insights, Rekt Capital, a renowned trader, notes that even though October showed a breakout, there’s a possibility of a chance reversal as Bitcoin closed September below the $27,100 mark which it struggled to breach before. The possibility of an upside wick brought about due to the volatility of the market is a viewpoint worth observing.
Supporting this school of thought, another market analyst, Jelle, gave a clear nod towards the strengthening bid units of Bitcoin amidst zero borrowing costs, thus amplifying the sentiment of disbelief. On the other hand, trader Skew pointed out an interesting disconnect amongst the spot market and derivatives.
However, Bitcoin devs have shown remarkable resistance and maintained composure against the surge in the U.S. dollar value, which earned a special nod of respect. Notably, even as the U.S. dollar index staged a sharp rebound up to a high orbiting around 106.7, cryptos stood unfazed. There seems to be a standout link between the booming yield bonds, oil prices, and the dollar strength, which unfortunately neither the market nor the US economy finds very appeasing.
Nevertheless, amidst this tug of war, the U.S Investment Management firm VanEck is preparing to usher in its Ethereum Strategy exchange-traded fund ready for trading on the Chicago Board Options Exchange (CBOE). This fund aims to amass capital by investing in ether future contracts, offering exposure to cash-settled ETH contracts. VanEck also promises a generous share of 10% of its profits from Ether futures ETF to Ethereum core developers over the next decade.
While there is a sense of exhilaration, there’s an equal measure of cautious vigilance echoing in these developments. The cryptoverse beholds the possibilities, anxiously eyeing the performance of Bitcoin and its potential impact on the dollar and the entire market.
Source: Cointelegraph
