BTC reached a four-month peak of $55,000 on Wednesday, Oct. 6, as a result of significant whale buildup, which occurred earlier in the week, though; its value has been fluctuating at about $54,000 as of the time of writing. Experts expect that the value of Bitcoin will reach $100,000 this year. Can Bitcoin’s price spike in the fourth quarter of 2017 repeat itself?
There is a lot of optimism surrounding the potential of the Bitcoin ETF being approved before the end of this month. Strong reports in the industry imply that the Securities and Exchange Commission (SEC) of the United States may approve the pioneer Bitcoin ETF of America later in the month. In 2017, a similar situation occurred! In late October, the Chicago Mercantile Exchange (CME Group) launched a new Bitcoin futures contract on the market for the first time. The CME Bitcoin Futures contract was incorporated on December 18, 2017, at a period when the price of Bitcoin had reached a record high.
Lark Davis, a crypto expert, describes the current circumstance as one of “purchase the rumors, sell the news,” and says he would not be surprised to see a similar scenario develop if the Bitcoin ETF is approved. Not to mention that corporate interest in Bitcoin is significantly higher today than it was in 2017.
Businesses Favor Bitcoin to Gold, says JPMorgan
According to a memo seen by Markets Insider from JPMorgan, the current BTC price rise in October was fueled by corporate involvement. It stated that investment company interest has increased following the SEC and Fed’s assurances that crypto assets will not be banned.
The financial behemoth stated that the previous pattern of money flowing out of Bitcoin and then into Gold had resurfaced. “Investment banks seem to be flocking to Bitcoin, possibly as a stronger hedge against inflation than gold,” the report continued. The three primary causes for the recent Bitcoin price surge are: “Recent guarantees by US authorities that there is no plan to emulate China’s lead in outlawing cryptocurrency use or mining, the significant increase of the Lightning Network and second-layer payment solutions has been facilitated by El Salvador’s embrace of Bitcoin, and the resurgence of inflationary worries among financiers has rekindled interest in using Bitcoin as a hedge against inflation.”
Since the beginning of 2021, the Gold ETF has lost more than $10 billion. But on the other hand, more than $20 billion has been invested in Bitcoin-related funds. “The rise in Bitcoin’s market share is a positive move, as it reflects corporate engagement more than lesser cryptocurrencies,” JPMorgan stated.