Bitcoin’s momentum continued over the last seven days, with the asset currently trading around $34,500, a gain of just above 1% over the week.
Bitcoin’s price is riding its highest level since May 2022, when it was on its way down from its all time high. The upwards trajectory in recent weeks has been driven by further excitement ahead of ETF-related news, writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro.
However, a peak on Thursday saw prices reach above $35,200 as the US Federal Reserve and Bank of England both announced rate holds, buoying markets looking for signals of the end of the rate hiking cycle. This was further compounded by weakening US jobs data on Friday.
Ether saw stronger gains over the last week compared to bitcoin, rising close to 5%. The cryptoasset began the week around $1,770 and moved flat until late in the week, with gains taking it to around $1,860 on eToro.
Elsewhere last week notable performers in crypto included Decentraland (MANA) which rose over 10% in seven days ahead of the Decentraland Music Festival on 16 November.
Week ahead
This week does not have the hotly anticipated market news we’ve seen over previous weeks, with a quieter few days ahead of Veterans Day in the US. While much of the recent momentum has been driven by excitement ahead of expected ETF approvals and halving anticipation, last week’s positive macro updates could fuel further gains as more signals roll in.
With markets now genuinely questioning if we’ve hit peak rates, the green light to enter risk assets could be turned on. However with central banks indicating that rates could now plateau to reflect persistent inflation levels, ebullience could be muted.
UK plans to enshrine crypto rules
The UK Government has officially announced its intentions to regulate the crypto industry next year, announcing in a consultation paper that it will look to bring in formal legislation for crypto activities by 2024. The move will see cryptoassets and their activities come under the same regulations that govern banks and other financial institutions.
ProShares launches bearish ether ETF
The first ETF that allows investors to take a bearish view on ether, the second largest cryptoasset will soon be rolled out by ProShares. An inverse to Standard & Poor’s CME Ether Futures Index, any losses seen by the index would see gains for the ETF, and vice versa. The ETF will work on futures, not the asset price due to current regulatory approvals focusing on spot price ETFs.
Bitcoin mining stocks see price bounce as market buoys
Mining stocks associated with bitcoin, such as Riot Platforms and CleanSpark saw price surges over the last week, as bitcoin hit a 17 month high. This coincided with the S&P 500 and Nasdaq also observing upwards trends, following the Fed’s decision to keep rates unchanged and relatively dovish remarks emanating from Jerome Powell.
