These are exciting weeks for bitcoin investors as the US Securities and Exchange Commission has approved the first ETF product backed by bitcoin futures. The market has continued to rally following this news, rising from a low of $54,370 to a high of $62,403.

Source: coinmarketcap.com

We can now observe almost real-time asset transfer and shifts of profit and loss from day-to-day.

Long- and short-term investors have their unique relationships. As we track the supply between both groups, we can see when and where macro trends shift.

The swing of the market supply between long-term investors and short-term investors is easily seen because of the Bitcoin see-through public ledger. It provides essential insights on all the data on the dynamics and fluctuation of the price.

Crypto-regulation: is it really necessary?

Regulators from all over the world are trying to either ban cryptocurrencies – like the Chinese government – or put the crypto market in tight hands. China’s economic situation is not exactly full of excitement at the moment. In Q3 2021, the country’s economic growth was just 4.9%. In October, Chinese regulators banned the entire crypto market and all cryptocurrency trades.

Regulators are trying to use more and more techniques to ban or restrict cryptocurrencies. The aim of these measures is to harm the crypto market. They are practically against all crypto activities and call it an acceptable way to get rid of criminal problems.

At the moment, not many criminal investigators see through the complexity of blockchain and cryptocurrencies, so they will rely heavily on external skills in the early stages.

Despite all the actions taken by politicians and regulators, Bitcoin is now seen as an asset with assertive positions.

Smart contracts, NFTs, GameFI, DeFi

Even though Bitcoin holds a leading position among all cryptocurrencies, the Ethereum-based blockchain offers new opportunities.

For example, we need to talk about DeFi solutions for investors, the use of smart contracts in many areas of life, and also new income opportunities through NFTs and GameFi.

New income opportunities exist in the NFT market. Currently, the trading volume of NFT is more than $10 billion. Non-fungible token assets can be anything online, from art and music to memes and other collectibles.

We also need to mention smart contracts, which work in all decentralized exchanges with NFT and GameFi. GameFi is an emerging platform where you can earn money by playing computer games. The so-called meta-universe will soon spread across many ecosystems – not only in the gaming industry but also in social networks.

Nation-state takeover

It’s been a groundbreaking year for the crypto industry. El Salvador made headlines in the summer of ’21 with its sensational news about Bitcoin adoption. Although other countries have yet to follow the same path, more and more politicians are speaking out positively about regulating the adoption or allowing cryptocurrencies to be used daily. CBDCs (central bank digital currencies) also have the intention of spreading around the world. It would be necessary to discuss whether CBDCs could be a competitor to Bitcoin or any other cryptocurrency, but the most important thing is that once an instrument appears on the market, demand will increase.

ETF approval

The New York Stock Exchange took a significant step forward on October 19 by approving an ETF on Bitcoin. After such a historic move, many opportunities will arise.

Longs are buying call options in bulk, and the upper strike price is expected to exceed $100,000 by the end of the year.

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