The fourth quarter of 2021 is wanting “traditionally bullish” for Bitcoin (BTC), in line with 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 value and fundamentals.
Outumuro notes that Bloomberg analysts have estimated there’s a 75% likelihood a Bitcoin ETF will get authorized 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 authorized in US markets as early as October https://t.co/X07qMRyhnM
— Lucas Outumuro (@LucasOutumuro) October 12, 2021
Last week, the U.S. Securities and Exchange Commission (SEC) approved the Volt Crypto Industry Revolution and Tech ETF (BTCR). Though it’s not a simple Bitcoin ETF, the product gives buyers oblique publicity to BTC through corporations which have important BTC holdings or are concerned within the Bitcoin business.
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 skill to masks complicated transactions on the blockchain. It is the primary main improve since Segwit (Segregated Witness) in 2017.
Lastly, Outumoro points to Bitcoin’s stable 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 latest enhance in institutional exercise and low correlation with conventional markets is favorable for buyers seeking to get in. This then drives higher fundamentals, bringing extra buyers and so forth.
Overall, Bitcoin is constructing sturdy momentum in a traditionally bullish quarter. Driven by sturdy fundamentals and potential catalysts, it’s seemingly that we’re simply firstly of an exhilarating finish of the yr.”
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