The Bitcoin market looks bullish. It has seen a rise of 4.2% in the past 30 days. Most experts believe that Bitcoin may reach an all-time high in the near future. So, what kind of problem are we talking about? In a series of X posts, cryptocurrency expert and analyst Duo Nine draws the attention of the cryptocurrency community is a very sensitive issue that bitcoin lovers must address in the near future if they want the original bitcoin chain to remain safe.
Security Shift in the BTC Network
The way Bitcoin is designed ensures that network fees from transactions will replace block rewards for miners over time. If the original bitcoin network remains active with regular transactions, this transition could be smooth.
The recent trend of increasing the issuance of exchange-traded funds and the use of encapsulated bitcoin makes Duo Nine wonder if the original bitcoin network can remain active in the long term. It is claimed that when bitcoin is locked on encapsulated bitcoin tokens, it remains dormant on the bitcoin network, generating no transaction fees. He sees the same problem with purchases of exchange-traded funds that operate with bitcoin. It is noted that Bitcoin brought in by fund issuers Traded on the Bitcoin-powered exchange remain dormant in custody wallets.
Duo Nine warns of the danger of third-party control over Bitcoin ownership. It highlights the importance of Bitcoin’s original vision: supporting direct ownership of assets. He condemns the indirect ownership model, created by exchange-traded funds and encapsulated bitcoins, asserting that it could undermine what bitcoin was originally designed to support.
In conclusion, using the Bitcoin chain for transactions directly helps support its transition to fee-based security, ensuring long-term stability.
Bitcoin settles near $68,500 amid strong bullish momentum
Bitcoin price settles at $68,499 today within a 24-hour range of $66,964 to $68,750, with a market capitalization of $1.35 trillion and a trading volume of $24.46 billion.
On the hourly chart, Bitcoin (BTC) was on a steady rise after breaking free from consolidation territory near $66,912. This upward movement gained momentum with an increase in trading volume. Now that activity has stabilized, the price has stabilized at around $68,500. For short-term traders, a potential entry point could be spotted near $68,000, especially if the trading volume rebounds again. Exit at around $68,742 or just below $69,000 in line with levels Close resistance.
Bitcoin’s recent actions establish a long-term uptrend, creating a support base near $58,867 and testing resistance at around $69,487. While trading volume has generally declined, a price hold above $66,000 indicates strong consolidation zone. A volume rally could lead to Bitcoin challenging to the $69,500 level and opening a potential path to the $70,000-72,000 range if the uptrend spreads.
Oscillator readings show a mixed mix: the RSI is neutral at 62, while the great oscillator is tilted towards bullish territory. Meanwhile, the moving average, divergence and momentum convergence indicators point to selling. However, the overall trend tends to rise across most moving averages, with strong bullish signals for exponential and simple moving averages from the 10-day mark to 200-day mark.
Bitcoin’s strong uptrend, supported by steady buying signals across multiple moving averages, suggests that continued consolidation near $68,500 could soon give way to a breakout above $69,500. If volume increases, this bullish momentum could extend towards $70,000 or higher, making it now a promising entry point for bullish traders.
ETFs control 5% of total bitcoin
According to exchange-traded fund analyst Nate Gerasi, exchange-traded funds (ETFs) are close to one million bitcoins in total holdings.
Combined, it controls approximately 5% of the total supply of the leading cryptocurrency. Last week, Bitcoin’s exchange-traded funds recorded $988 million in inflows.
BlackRock’s standard IBIT fund saw $1.15 billion in inflows in just one week. For comparison, Spot Ether ETFs attracted only a small portion of these flows ($78.89 million). These products still suffer from rather lukewarm investor interest. On October 25, the IBIT fund attracted a staggering $291 million in new funds. These positive exchange-traded fund inflows coincided with Bitcoin’s staggering price recovery. The leading cryptocurrency is currently trading at $68,384.
BlackRock’s IBIT fund is now close to $24 billion. It is already the best-performing ETF in terms of inflows among all ETFs launched over the past four years. Grayscale’s GBTC Fund and FBTC Fund Fidelity’s subsidiary is in second and third place with $14.72 billion and $12.42 billion, respectively. Ark Invest’s ARKB Fund and Bitwise’s BITB Fund In the top five with $2.65 billion and $2.28 billion, respectively
QCP Capital’s weekly report pointed to signs of pessimism regarding the price of bitcoin, which were sparked by allegations of the US government’s investigation into Tether due to possible violations of anti-money laundering rules and sanctions, which led to a sharp decline in the USDT stablecoin on Friday.
With the Dow Jones Industrial Average and S&P 500 down 0.61% and 0.03%, respectively. The cryptocurrency fell soon after, with BTC briefly falling to 65,500.
