- Bitcoin’s SOPR indicator has seen a full reset, turning negative for the first time in 5 months
- The indicator points to a possible local bottom for Bitcoin
- The last time it fell this low, Bitcoin went from $33,400 to $57,400
- The crypto fear and greed index has fallen to levels last seen in late January when Bitcoin fell to $30k then went on to post a new all-time high above $58k
- Bitcoin’s weekly/monthly close is the final bearish hurdle for BTC
Bitcoin’s SOPR indicator has experienced a full rest and turned negative for the first time in five months. This is according to data shared by the team at Glassnode who also pointed out that the SOPR indicator going negative means that investors are on average moving BTC at a loss. Below is the full statement by the team at Glassnode and a chart demonstrating the drop in the SOPR.
The daily #Bitcoin Spent Output Profit Ratio (SOPR) has seen a full reset, and turned negative for the first time in five months – investors were on average moving BTC at a slight loss, indicating profit-taking has abated.
Bitcoin’s SOPR Hints of a Possible Bottom for Bitcoin
The SOPR, or Spent Output Profit Ratio, ‘represents the profit ratio of coins moved on-chain, measured through the variation between purchase price and sale price’. A SOPR value greater than 1 means that investors are selling at a profit. When the SOPR goes below 1 as is the case right now with Bitcoin, investors are selling at a loss.
The team at Bloqport has seen the recent drop in the SOPR as a hint that Bitcoin has bottomed at least for the short term. According to Bloqport, such a reset last happened when Bitcoin went from $33,400 to $57,400. Furthermore, funding rates have also cooled off thus providing the ideal environment for another leg up for Bitcoin.
Crypto Fear and Greed Index Falls to Levels Last Seen in Late January
In addition to the SOPR experiencing a rest, the Crypto fear and Greed index has dropped to 55 after plateauing above 90 for the better part of February. An index value of 55 was last witnessed in late January when Bitcoin bottomed at $30k. The local bottom at $30k set the pace for Bitcoin to post a new all-time high of $58,389 – Binance rate – on the 21st of February.
Therefore, chances of a local bottom are high for Bitcoin. However, Bitcoin has one last bearish hurdle for the month of February in the form of the weekly and monthly close only a few hours away. This event could provide additional selling pressure that could ultimately break Bitcoin’s $44k support and send it lower to the $42k support zone.
Billionaire Mark Cuban Identifies Altcoin With ‘Most Upside’ As Bitcoin Blasts Above $60,000
As Bitcoin shoots above $60,000, business magnate Mark Cuban says one altcoin stands above the rest in terms of investment potential.
In a new interview with CNBC Make It, the billionaire says that Ethereum (ETH) is the best crypto prospect on the market.
“As an investment, I think Ethereum has the most upside.”
Cuban, who previously stated that smart contracts on Ethereum’s blockchain have revolutionized the cryptocurrency market, believes that the second-largest crypto by market cap is the digital asset which most resembles legal tender.
“I wish I had bought [Ethereum] sooner. I think it’s the closest thing we have to a true currency.”
Cuban went on to reiterate his position that Bitcoin (BTC) is superior to gold because not only is its supply scarce, but it’s easier to transfer, store, trade, and fractionalize. That sentiment is shared by fellow billionaire CEO Chamath Palihapitiya of Social Capital and Virgin Galactic.
Cuban’s comments come on the heels of him saying that customers prefer making payments in Dogecoin (DOGE) rather than BTC at his venues because Bitcoin tends to be a highly appreciable asset.
Ethereum is exchanging hands at $3,839 at time of writing, an 11% increase from its seven-day low of $3,431, according to CoinGecko.
ProShares Set for Bitcoin Futures ETF Launch on Monday After Apparent SEC Approval
The US Securities and Exchange Commission has reportedly greenlit the country’s first Bitcoin futures exchange-traded fund (ETF).
ProShares, an ETF provider, filed a post-effective amendment prospectus on Friday that states the company plans to launch the BTC Futures ETF on Monday, a sign that the SEC has approved the product.
The fund doesn’t invest directly in Bitcoin, but it provides price exposure to Bitcoin futures contracts, a first in the US.
Both Bloomberg and CNBC, citing people “familiar with the matter,” reported earlier in the week that the SEC planned to approve BTC futures ETFs from ProShares and the independent investment firm Invesco Ltd.
Invesco’s ETF is also set to provide exposure to a collection of exchange-traded products (ETPs) and private investment trusts that hold Bitcoin, rather than direct investments in BTC itself.
Last month, SEC Chairman Gary Gensler said he was open to ETFs for Bitcoin futures, noting that they are filed under mutual fund guidelines which provide “significant investor protections.”
Bitcoin is trading at $61,549.38 at time of writing and is up 6.6% in the past day and more than 40% in the past two weeks, according to CoinGecko.
BTC hit its all-time high of $64,804.72 in mid-April.
Bitcoin May See Real Peak If ETF Is Approved and I May Cash Out Half My ETH: CNBC’s Jim Cramer
Jim Cramer shares a common view that Bitcoin has the opportunity to reach a short-term peak or even a real peak if Bitcoin ETFs are approved next week.
Host of CNBC’s Mad Money, Jim Cramer, has talked to Andrew Sorkin from CNBC’s Squawk Box show about the prospects of the Bitcoin price if or when four Bitcoin futures ETFs get the SEC’s approval next week.
Cramer also stated that he may cash out half of his Ethereum stash.
SEC approval for ETF may push Bitcoin up, Cramer says
Answering Sorkin’s question, Cramer stated that a lot of people believe there is a high chance that the senior cryptocurrency, Bitcoin, may hit a short-term or even a real price peak if four BTC-based ETFs are approved by the SEC next week.
He corrected the host and said that the regulatory agency may approve not just one but four Bitcoin futures ETFs next week.
However, he stated that people are running ahead of a possible ETF approval.
"There's a possibility a lot of people feel that you can get a short-term peak, or maybe a real peak as people just run ahead of the ETFs," says @jimcramer on a #Bitcoin ETF approval. "I might cash out half my $ETH." pic.twitter.com/48MJP047yK— Squawk Box (@SquawkCNBC) October 15, 2021
Bitcoin spikes to $59,500 as chance for ETF approval emerges
Earlier today, the flagship digital currency, Bitcoin, soared to a multi-month high of $59,500 on the Bitstamp exchange. It happened after Bloomberg released a report, saying that so far the Securities and Exchange Commission has not objected to approving multiple Bitcoin futures ETFs that were submitted to it earlier this year.
The Bloomberg article stated that the information had been confirmed by multiple sources close to the SEC and to the matter in question.
The media giant’s ETF analyst, Eric Balchunas, believes that the likelihood of Bitcoin ETFs getting the green light has now risen to more than 90%. Still, he is not ready to “close the case” yet.