Crypto Analysts in Agreement For Bitcoin Prices Breaking Out in November
Bitcoin’s price has been bouncing between $6,000 and $8,000 for most of the summer. According to a new report, however, we could see a bitcoin breakout begin as soon as early November.
“Bitcoin experts pin price hopes on early November”, writes Billy Bambrough at Forbes.
Bambrough admits that some investors are looking towards the end of September as an important time for bitcoin. The United States Securities and Exchange Commission (SEC) is scheduled to make a decision on a major bitcoin ETF before September 30, 2018. The SEC has to approve, deny, or delay the decision on that VanEck SolidX Bitcoin Trust ETF by September 30. After the SEC delayed the ETF once earlier this summer, some are hoping that the ETF will be approved later this month.
Bambrough, however, points to a more important date:
“But others are looking beyond that, pointing to the New York Stock Exchange's parent company, Intercontinental Exchange (ICE), plans to roll out a bitcoin ETF on November 5.”
In July, ICE – the parent company of the NYSE – announced the launch of a crypto platform called Bakkt. ICE launched Bakkt in partnership with some of America’s largest and most influential corporations, including Starbucks, Microsoft, and Boston Consulting Group. That startup plans to launch an ETF among other crypto products.
The ETF will have important distinctions from other crypto ETFs. Namely, the ETF will be offered through Bakkt’s crypto platform, which will use “real” bitcoin for all transactions on the platform. This is designed to create accurate price discovery in the bitcoin community – something that might not necessarily take place on other platforms.
“Our new daily bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset,” Bakkt CEO Kelly Loeffler said in a blog post. “This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement.”
The Price of Bitcoin “Will Hit $10,000 By the First Week of November”
Bambrough at Forbes cited Hermann Finnbjörnsson, founder and chief executive of bitcoin and crypto advisory firm Svandis, who told The Street that he believes the price of bitcoin will hit $10,000 by early November:
“I believe that [the bitcoin price] will hit $10,000 by the first week of November. I think that there are a lot of reasons to be bullish on bitcoin. [There's] Less than a 1% chance in my mind that bitcoin won't succeed.”
Meanwhile, some in the community debate whether we even need a bitcoin ETF. Bitcoin has succeeded for nearly a decade without an ETF or other financial products. Could a bitcoin ETF be bad for the cryptocurrency? Could it lead to the over-financialization of bitcoin? That’s certainly possible.
In any case, there are two main time periods to watch for:
Late September, which is when the SEC is expected to make a decision on the VanEck SolidX Bitcoin Trust ETF, one of the most promising ETFs in the space and one that has a real chance of being the first approved bitcoin ETF in the world
Early November, because on November 5, Bakkt is expected to roll out their own bitcoin ETF.
Both of these time periods could be huge for bitcoin markets. If both ETFs are approved, it could send crypto prices skyrocketing. Of course, both of these dates could also be non-events if the ETFs are denied. We’ll see what happens next.