The fourth quarter of 2021 is trying “traditionally bullish” for Bitcoin (BTC), based on one blockchain researcher.
Lucas Outumuro, head of analysis on the blockchain intelligence agency IntoTheBlock, says on Twitter that three elements are driving BTC optimism:
1. The potential approval of a Bitcoin exchange-traded fund (ETF).
2. The upcoming Taproot improve.
3. The “suggestions loop” between BTC’s worth and fundamentals.
Outumuro notes that Bloomberg analysts have estimated there’s a 75% likelihood a Bitcoin ETF will get authorised as early as this month.
9/ The approval of a highly-anticipated Bitcoin ETF is driving expectations
Bloomberg analysts give a 75% likelihood of a Bitcoin ETF being authorised in US markets as early as October https://t.co/X07qMRyhnM
— Lucas Outumuro (@LucasOutumuro) October 12, 2021
Final week, the U.S. Securities and Alternate Fee (SEC) authorised the Volt Crypto Business Revolution and Tech ETF (BTCR). Although it’s not a simple Bitcoin ETF, the product gives buyers oblique publicity to BTC by way of firms which have vital BTC holdings or are concerned within the Bitcoin trade.
Outumuro additionally notes that Taproot is scheduled for November and comes greater than 4 years after the final main Bitcoin improve.
Taproot is a delicate fork that goals to boost Bitcoin’s privateness measures, sensible contract flexibility, and talent to masks advanced transactions on the blockchain. It’s the first main improve since Segwit (Segregated Witness) in 2017.
Lastly, Outumoro points to Bitcoin’s strong fundamentals. The blockchain researcher notes that 99.2% of all Bitcoin transaction quantity this month is coming from transactions of greater than $100k, which he argues is proof that whales and establishments are actively utilizing BTC.
“The current enhance in institutional exercise and low correlation with conventional markets is favorable for buyers trying to get in. This then drives higher fundamentals, bringing extra buyers and so forth.
General, Bitcoin is constructing robust momentum in a traditionally bullish quarter. Pushed by robust fundamentals and potential catalysts, it’s possible that we’re simply firstly of an exhilarating finish of the 12 months.”
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