Bitcoin (BTC) registered its highest weekly close of $61,500 in its 11 year history yesterday. So far in October, BTC has raked in more than 40% gains after a 7 percent dip in September. The total cryptocurrency market cap stands at $2.49 trillion today. In this article, we will look at trends in the cryptocurrency space this week with an outlook for the immediate future.
Bitcoin soars ahead of its ETF listing
The price of BTC soared above the psychological resistance of $62,000 on Monday ahead of the much-anticipated debut of the first US Bitcoin futures exchange-traded fund (ETF) on the New York Stock Exchange (NYSE). Analysts observe that Bitcoin ETFs will likely become a key driver in onboarding the next wave of cryptocurrency investors. BTC is currently trading near $62,200 with a market dominance of 47.1 per cent.
Altcoins struggle against BTC
All the top 20 altcoins struggled to gain significantly against BTC over the last 24 hours with only Binance Coin (BNB) and meme coin Shiba Inu (SHIB) posting 4 per cent gains. However, Polygon (MATIC), Binance Coin (BNB) and Polkadot (DOT) have rallied more than 20% in the last seven days against the US Dollar.
Ethereum (ETH), the second largest crypto market cap, is currently trading near $3,810 a coin with a 2% increase from the previous day. ETH continues to face strong selling pressures near the $4,000 region and will find support near $3,600 on the downside. ETH currently contributes 18 per cent to the market with a capitalization of nearly $450 billion.
The battle for the third spot
BNB stands tall in the tug of war for the third spot with Cardano (ADA) and is currently leading by $12 billion in market cap. BNB is currently trading at $490 while ADA hovers at $2.1.
Binance exchange has burned almost $640 million worth of its tokens this week aiding to its gains. BNB is likely to lead ADA in the upcoming future as companies developing smart contracts and DeFi protocols on Cardano blockchain take time to develop their solutions. ADA is likely to trade in the region of $1.8-2.2 over the next few weeks before regaining strength towards its all-time-highs of $3+.
Short-term outlook for Bitcoin
As speculations of a sell-off post the approval of Bitcoin ETF listing rise, BTC has been steady above $60,000. Valkyrie, Galaxy Digital, VanEck, ETF Series Solutions and ARK Invest are some of the institutes looking to launch Bitcoin ETFs, with Valkyrie the first to launch this week. Analysts expect BTCâ€™s momentum to continue this month as quarterly results of bigger corporations may reveal some of their BTC investments.
The next major resistance for BTC will come near its previous all-time-high of $64,800, after which $70,000 levels come into play. However, momentary pullbacks are expected along the way as BTC long-time holders take some profits.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.