Crypto Digest. 15.10

The price of bitcoin is approaching $60,000, but there are fears among institutional investors that even if we see the overcoming of this psychological mark, the rally will still be short-lived. Altcoins on Friday, October 15, demonstrate multidirectional dynamics.

Some coins grow along with the BTC, while others, on the contrary, are corrected. The capitalization of the crypto market is now just over $2.424 trillion. As early as next week, the Securities and Exchange Commission (SEC) may make a sensational decision.

The head of the SEC, Gary Gensler, has repeatedly hinted that the US regulator is ready to approve bitcoin-ETF futures. At the end of this week, Blomberg, citing its sources, confirmed that the commission will indeed approve the new product in the coming days. We are talking about several applications, but the regulator refrains from any comments.

On the eve of this event, there is an increase in the value of both Bitcoin and other digital currencies.

Meanwhile, Mexican President Andres Manuel López Obrador ruled out the legalization of bitcoin following the example of El Salvador. He emphasized that at this stage, his country is more interested in collecting taxes, and not in recognizing cryptocurrency as legal tender.

The ascent continues

The bitcoin rate at the beginning of the North American session came close to $59,500. Its capitalization now exceeds $1.121 trillion. Ether (ETH) rose to $3,788. Binance Coin (BNB) and Cardano (ADA), on the contrary, are losing ground, now these coins are trading at $462 and $2.16, respectively.

XRP and Dogecoin (DOGE) tokens fell back 3% on Friday evening to $1.12 and $0.229. Technical data suggests that Bitcoin should break above $60,000 for the first time since April in the coming days. Network activity is increasing and trading volume is growing.

However, as analysts at OKEx Isights note, the futures market is dominated by short-term positions. Players are expecting a significant correction ahead of a more aggressive run.

The growth in futures premiums suggests that in the long term, traders are still hoping for the continuation of the bullish trend. However, it will not be as productive as in the first half of October. In contracts with expiration at the end of December and March, the execution price is indicated in the areas of $61,065 and $63,000 per bitcoin, respectively.

The ratio of long and short positions is now below one. Analysts have come to the conclusion that most retail traders are short-oriented (short-term positions), that is, they believe that the market is overheated and ready for a correction. And it will come in the very near future.

Doomsday for Institutions

Next week, the SEC may approve the first application for bitcoin futures ETFs. This is not about launching an exchange-based crypto fund, but about the emergence of a contract focused on such a product. Previously, ProShares and Invesco Ltd submitted applications to launch bitcoin-ETF futures.

Note that Gary Gensler himself recently advocated the recognition of an ETF-focused futures product. On the eve of this epochal event, institutionals have become more active, as evidenced by the growth of the capital of Grayscale, a digital asset manager. The Bitcoin trust of this giant has accumulated $37.289 billion.

It is worth paying attention to one more thing – the SEC warned investors about the risks of investing in bitcoin-ETF futures. This may signal an imminent change in the position of the US regulator and preparations for the launch of a new product that hedge funds and financial companies are waiting for.

Mexico abandons bitcoin

Some Latin American countries are considering options for recognizing BTC as legal tender following El Salvador. Research company Arcane Research has compiled a list of states that could potentially follow the path of El Salvador.

This list included countries from Latin America, as well as from Africa. According to analysts, by 2030 we will already have several states that have recognized BTC as a full-fledged payment instrument.

However, Mexico does not want to move in this direction. Its president, Andres Manuel López Obrador, said at the end of this week that the government is more concerned about collecting taxes than recognizing bitcoin. During his speech at a press conference, the head of state rejected such a scenario in which BTC became equal to the national currency. After that, opposition politicians and users of social networks began to massively criticize the head of state.

Sources: The Block, CoinMarketCap, Twitter, SEC, OKEx Insights, Bloomberg