Potential Bitcoin ETF Approval Affects Cryptocurrencies: Analysis
Market sentiment is improving, especially after news of the imminent SEC approval of the Bitcoin ETF.
On October 14, the bulls showed intent to push the price of Bitcoin (BTC) to $65,900. After hitting a low of $54,103 on October 13, Bitcoin rose 8.2% to an intraday high of $58,532 on October 14, according to Cointelegraph Markets Pro and TradingView. Parallel to this, the Crypto Twitter discussion of ETFs has become quite lively.
The jump above $58,500 marks a 100 percent increase in the price of BTC since it bottomed out at $29,193 on July 20. This indicates a strong recovery and increasing demand for cryptocurrency.
In addition, such indicators of Bitcoin indicate that market participants have returned to the accumulation mode. According to Glassnode, the amount of Bitcoins stored in wallets has been on the rise since the price briefly dropped below $29,000 in mid-June.
The upbeat sentiment surrounding Bitcoin has drawn additional attention to BTC-related projects that aim to facilitate its integration into the decentralized finance (DeFi) ecosystem and add smart contract capabilities to the Bitcoin ecosystem.
Data from TradingView shows that since October 1, the price of BADGER, a Badger DAO company focused on building products based on Bitcoin integration with DeFi, has risen 187% from a low of $15.69 to a daily high of $45.09 on October 14. And the 24-hour trading volume increased 147% to $162 million.
Stacks, a tier 1 blockchain solution aimed at introducing smart contracts and decentralized applications to the Bitcoin network, also faced a sharp jump in the price of tokens.
According to Cointelegraph, STX’s VORTECS ™ started rising on October 11 and peaked at 82 about five hours before the price rallied 33% over the next two days.
Overall, Bitcoin ETF approval rumors continue to influence price changes in the cryptocurrency market, especially in relation to tokens associated with the leading cryptocurrency.