Bitcoin hits $41K amid spot ETF hopes, end of rate hikes
Bitcoin (BTC-USD) surged past $41,000 Monday morning, with some investors speculating the Federal Reserve could be done raising rates and hopes that a spot bitcoin ETF approval could cause the cryptocurrency to rise even further. Yahoo Finance’s David Hollerith breaks down the rally and the outlook for the cryptocurrency.
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Video Transcript
– All right, let’s get to another trend for today, and that is Bitcoin, climbing even higher, jumping well above 41,000, briefly climbing as high as 42,000. You can see it trading in between that range now. So investors speculating the likelihood of a spot ETF and betting big on the end of rate hikes, potentially. We’re always trying to figure out what exactly is moving Bitcoin here.
Let’s get over to Yahoo Finance’s Jared Blikre. He’s standing by at the touchscreen for a closer look at some of the moves that we’re seeing. Jared.
JARED BLIKRE: Bitcoin rallying over the weekend. I’m getting 2021 vibes. But let’s take a look at the price here, because Bitcoin was up for no particular reason over the weekend, up 10% over the last five days. This goes back to the close last Thursday, and I’m tired of hearing about that Bitcoin ETF, the spot one, anyway, it’s going to happen. That might be a sell the news event, at least temporarily. But in the meantime, investors can really celebrate the higher prices.
This is a five-year chart. This shows the record highs here. One of the things that Brian Sozzi was noticing earlier today in our [INAUDIBLE] memo is that the volumes just have not matched what we’ve seen before. In fact, if you were to look at the volumes, not shown here, we are basically at where we were in early 2020 before the pandemic.
Why is this perhaps not as important as you might think? There was a lot of fraudulent volume in here, and so I think those levels were very elevated. There was a lot of washing of tokens between stablecoins and whatnot, FTX went south, lots happened in here. So I think it’s going to take a new normal. We’re going to have to find a new baseline to figure out what that volume is.
Want to show you the technicals in Ethereum, and then we’ll get to gold, real quick. Let me show you a year-to-date chart. You can see we had this big consolidation area, and then we just broke to the upside. So just based on the length of this consolidation, I would say we have a ways to go in Ethereum.
And now we got to talk about the futures industry, because we got gold. These are prices over the last month. Gold is only up 3.7%, but it’s getting headlines today, because it is at a record, at least in terms of US dollars. It’s been at other records before. This is what’s happened this year.
And we really got started in the middle of October. That’s when this move got started. Guess what, that’s when Bitcoin started to break into the upside, too. And is there any underlying reason?
Well, I’m going to point us to the 10-year Treasury note yield. Guess what started peaking and then going south in mid-october? That was a 10 year T-note. So all of this has been facilitated by yields. I’m going to have a more in-depth discussion about how this affected stocks in the sector action with Matty Mills in a few minutes. So stay tuned for the morning bell.
But in the meantime, the bond market has definitely been wagging the tail, which is– or the tail has been wagging the dog, which is the rest of the market. Don’t concentrate on that metaphor too closely, your head might spin. But I think you get my point.
