Bitcoin has been on a bullish trend throughout the past month. After a recent run that led to hitting an all-time high of $66,974, Bitcoin pulled back closer to the $59,000 range.
Bitcoin had slumped in mid-May through to July, hitting lows of around $29,000. This downward spiral was seen to be the effect of the China crypto crackdown and Tesla stopping the use of Bitcoin as a payment method.
However, if one thing has become synonymous with the crypto market is a market rebound. Within a few weeks, the coin rallied and hit $60,000 in mid-October, a run which has been sustained to surpass the earlier all-time highs.
The massive rise of Bitcoin is likely a result of the launch of the first US EFTs. For a long time, the Securities and Exchange (SEC) had delayed or denied approving Exchange-Traded Fund (ETF) applications citing the risk of crypto market manipulation. This had seen various entities withdraw their applications or reword them before submitting them.
As the crypto market has been expanding and becoming more mainstream, it was only a matter of time before the SEC approved the first EFTs in the market. This came to pass when the commission approved the ProShares Bitcoin Strategy ETF to be the first-ever Bitcoin exchange-traded ETF in the US. It has come with an instant impact on the market as over a billion dollars has already been traded on the NYSE.
The legalisation of ETFs is one of the signs of a maturing market and has come with massive excitement in the crypto community. Top influential figures in the community are rooting for more growth. For example, Twitter CEO, Jack Dorsey tweeted a moon following Bitcoin surpassing its all-time high record. At the same time, the Tesla CEO has also been tweeting about the new highs.
So, what’s next?
When a coin surpasses its all-time high, the question on everyone’s mind is what’s next? The question is always how long can the coin sustain its run or is it time to cash out and avoid a correction.
So far, there are mixed reactions to possible Bitcoin price movements. Some crypto experts have suggested Bitcoin price will hit six figures for the first time within the next two months. Some like the Ark CEO Cathie Woods have also commented on the possible long-term price movement of Bitcoin. She believes Bitcoin will hit $500k within the next five years.
Generally, there is excitement within the market with the hopes that the larger crypto market will also surpass its all-time high market cap record of $2.5T. This is possible following the rise of the various digital currencies like Ethereum, Bitcoin Cash and Cardano.
At the same time, there are concerns about a possible Bitcoin crash based on historical trends. Similar high Bitcoin price movements had once been seen following the launch of the first Bitcoin futures market in 2017. Bitcoin subsequently fell by more than 20% within 20 days following the launch.
However, the current market run is driven by genuine consumer needs and investments. Therefore, there is a higher possibility that we will see further price increases in the upcoming months.