Bearish Camp Concedes as Bitcoin Enters ‘Anti-Gravity’ Phase

Bitcoin Bears Surrender

Bitcoin bears suffered losses exceeding $178 million within the last 24 hours as prices surged beyond a crucial resistance level. Notably, this price rally was ignited by growing optimism regarding the registration of a spot Bitcoin exchange-traded fund (ETF).

Data indicates that nearly half of the $400 million in cryptocurrency liquidations on Monday were linked to Bitcoin futures, with only $50 million attributed to liquidations in Ethereum futures, covering both long and short positions. Liquidations transpire when an exchange forcibly closes leveraged positions due to an insufficient initial margin. In essence, traders lack the necessary funds to maintain their positions.

Interestingly, three major crypto exchanges, namely Binance, Huobi, and OKX, all witnessed $50 million worth of liquidations each, indicating the substantial leverage utilized on these platforms. Binance even recorded the largest single liquidation order with a value of $10 million.

The surge in Bitcoin prices, climbing by 12% and reaching a peak of $35,200 before retracing slightly on Tuesday morning, was likely prompted by lower trading volumes and remarkable demand. This increase in market capitalization amounted to tens of billions of dollars within a few hours.

The crypto community and analysts attribute this surge to the anticipation surrounding the registration of BlackRock’s spot Bitcoin ETF, which is currently under consideration by the U.S. Securities and Exchange Commission (SEC). These developments have rekindled hopes of a bullish revival in the crypto market, which had been experiencing a period of relative stagnation in recent months.

Why $BTC is pumping?#iShares Spot #Bitcoin Trust is listed on The Depository Trust & Clearing Corporation (DTCC). $IBTC

The #SEC has accepted the rule change to list and trade shares of the #Grayscale Ethereum Futures Trust (#ETF). pic.twitter.com/Ask2wsaUL8

— Lookonchain (@lookonchain) October 24, 2023

Lucy Hu, a senior trader at Metalpha, shared her insights, saying, “Bitcoin’s recent momentum is further buoyed by the potential approval of ETFs and the growing number of ETF submissions from prominent companies. With the prospect of a Bitcoin ETF approval and the upcoming halving event in April, the crypto market could potentially usher in a robust bull market.”

Bitcoin is defying gravity with a 12% surge during Asian trading, drawing comparisons to the introduction of the first Gold ETF and signaling the impending approval of a Bitcoin ETF.

Bitcoin in ‘Anti-Gravity’ Phase

Industry insiders and analysts have noted that this rally, which propelled Bitcoin beyond the critical $31,000 resistance level, is partly attributed to BlackRock listing its Bitcoin ETF with the ticker $IBTC on the Depository Trust & Clearing Corporation database. The momentum has been so strong that Bitcoin is being described as being in an “anti-gravity” phase, with potential to reach $75,000 in the coming months.

Jack Tan from Woo Network emphasized that the recent surge is just a glimpse of what might occur if ETFs are indeed approved. He pointed out that much of this anticipated impact on Bitcoin’s price had already been factored in when Bitcoin was priced at $25,000 in February, as evidenced by the narrowing discount of the Grayscale Bitcoin Trust (GBTC), which closed at a 16% discount the previous Friday.

Tan also noted that altcoins are behaving more like tech stocks and lack the same flight-to-safety characteristics as Bitcoin. As a result, he expects them to underperform Bitcoin and Ethereum, with the latter eventually catching up with Bitcoin.

David Lo, the head of financial products at Bybit, mentioned that Bitcoin has been the primary beneficiary of these positive catalysts, leading to a rise in Bitcoin’s dominance, which is now at its highest since early 2021.

>>> Bitcoin Surges to $35K USD, Reaching Highest Level in Months

Bitcoin has been gaining market share at the expense of Ethereum and stablecoins. However, Lo also anticipates potential selling pressure on GBTC as the discount narrows, as those who bought during the 40% discount phase might consider selling at current prices.

Quinn Thompson, the Head of Capital Markets and Growth at Maple Finance, sees Bitcoin as the modern equivalent of gold, serving as a safe haven for investors in times of economic uncertainty.

He draws parallels with BlackRock CEO Larry Fink’s characterization of the recent crypto rally as a “flight to quality” amid global challenges, echoing the sentiments of prominent investor Paul Tudor Jones.

Thompson also suggests that Fink’s vocal support for Bitcoin indicates confidence in the likelihood of the SEC approving his ETF application, drawing a parallel to the historical role of gold as a refuge for investors.