Crypto Space: Bitcoin To the Moon, Ethereum Nearly There Also
Bitcoin Shoots to the Moon Because of Blackrock
“Shoot to the moon”. The mantra of WallStreetbets certainly rings true for Bitcoin in October 2023. The reason? Blackrock’s exchange-traded fund for Bitcoin appeared on a list controlled by Depository Trust and Clearing Corporation. Back in June 2023, Blackrock applied for it from Nasdaq and is still pending approval. This list is just part of the procedure to get cleared, but that has driven much investor interest in Bitcoin. Blackrock after all, gives legitimacy to Bitcoin with its launching of a fund dedicated to it, where the cryptocurrency has been clowned on multiple times. At one point, Elon Musk’s Twitter drove Bitcoin prices.
However, there are some risks to Blackrock’s ETF and indirectly, Bitcoin. The Securities Exchange ruled against Grayscale Investment’s ETF. And even though this decision was overturned by the DC Court of Appeals, it seems like regulators are still unsure about cryptocurrencies.
Ethereum Follows Suit While NFTs Continue to Sink
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Ethereum is also bucking the overall Bitcoin trend, rising by 8.6% in October 2023. However, the increase is much less considering that Blackrock’s ETF is focused on Bitcoin. As compared to Bitcoin, interest in Ethereum seems to be less bullish as it has only gained by 52% since the beginning of the year compared to Bitcoin (+109.5%).
There are potentially some factors in play here. One, while its proof-of-stake system has been implemented, investor interest and confidence don’t seem to be gaining considerably. If anything, Ethereum might need a Blackrock equivalent of an ETF to spur interest in it.
As most of the NFT ecosystem uses Ethereum (83%), NFT market developments so far haven’t been positive. According to CoinGecko, trading volumes declined by 55.6% to US$1.6 billion in 3Q 2023.
For you: To be honest, I am not an expert in Crypto markets. But there are a couple of factors that you would need to watch out for. There is already news that the global recession will spur interest back in the crypto markets as a hedge against it.