September The downtrend did not last long The market accelerated in the fourth quarter with the launch of the first US Bitcoin exchange, the Bitcoin Futures ETF. Bitcoin went from $ 40,000 to $ 65,000 in October, supporting the vision of $ 100,000 before the end of the year. This is not true. The competition failed and Bitcoin skepticism returned, and the prediction numbers turned very bullish.

First American Bitcoin-Link ETF

After several months of delay, the chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, announced in August his preference for currency exchange based on Bitcoin futures. Traders are starting to expect the United States Securities and Exchange Commission (SEC) to approve an ETF link to Bitcoin in October.

Behind this expectation lies the belief that many traders in the sector have always wanted to bet on Bitcoin but did not have the setup or the expertise to do so.

For years, cryptocurrency industry leaders have speculated that the US Securities and Exchange Commission (SEC) approval of the Bitcoin ETF under the leadership of SEC Chairman Jay Clayton could finally lead the holy grail of the cryptocurrency's “adoptive body”. .

However, not all Bitcoin-linked ETFs are created equal. Bitcoin Futures ETFs are supported by futures contracts such as trading on the Chicago Mercantile Exchange. On the other hand, “spot” Bitcoin ETFs are ETFs directly backed by cryptocurrencies.

“I think his idea is very true,” Steven McClurg, commercial director of Valkyrie, told CoinDesk at the time. "Pure Bitcoin ETFs cannot be released anytime soon, and the future will be determined."

Experts warn that Bitcoin futures ETFs will be affected by the negative, especially if there is a phenomenon called “contango bleed” or “ongoing cost” that is eroding investor returns.

However, some analysts predict that accepting only spot or futures Bitcoin ETFs will make it easier for current investors to get crypto and support the whole business.

On October 15, Bitcoin returned its value of $ 60,000 as investors eagerly awaited the approval of the Bitcoin ETF.

On October 19, the ProShares Bitcoin Strategy Exchange Traded Fund (NYSE: BITO), the first Bitcoin ETF futures exchange in the United States, was launched. Most of BITO's day one packaging activities were as good as the trader's. This is because there are very few large "block" companies that are usually supplemented by large companies.

“This will be what we all want,” Nadig said in a phone interview with CoinDesk at the time. "It's a tool for some buyers." “There are a lot of players active in the market, but they don't want to cross the crypto bridge alone.

overbought bitcoin

However, as Bitcoin rose by around 40% in the first two weeks of October, some analysts began to question whether the BITO ETF is just another 'buy and sell' fact. .

“This month we're up 40%, and it's only been a fortnight,” Mark Yusko, CEO and CFO of Morgan Creek Capital Management, told CNBC Oct. 17. "It's a long delay." . “For now overbought, the new eyes shouldn't come as a surprise,” Yusco said.

The encrypted length has not yet been processed. In the days following BITO's first trade, Bitcoin continued to rise, peaking at $ 69,000. Several other cryptocurrencies (altcoins) have joined the competition. Ether is the second largest cryptocurrency by market cap, surpassing $ 4,000 for the first time since mid-May.

But with the arrival of November, buyers can no longer master the new highs. Bitcoin started to fall below $ 60,000 as very strong traders started to work hard. Some indicators, such as the 'fear and greed index' of cryptocurrencies, show that the market is in a 'very greedy' zone, which often precedes the drop in prices, as shown in the form below. .

It was finally stable below $ 50,000 at the end of December.

The bullish price called earlier this year, like the prediction that BTC will hit $ 100,000 at the end of the year, looks odd, especially when bullish sentiment worsened last month. Some analysts still expect a price close to the rate of return as it was last year. At the very least, crypto investors can expect a change in 2022.