Bullish sentiment for Bitcoin: signs to monitor
Bullish sentiment for Bitcoin: signs to monitor

Bullish sentiment for Bitcoin: signs to monitor

By Vincenzo Cacioppoli - 2 Nov 2021

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After hitting an all-time high on October 19 at almost $67,000, BTC’s price has been hovering around $60,000 for days now, seemingly without any clear direction. But sentiment for Bitcoin remains bullish. There are some signs that the world’s most popular cryptocurrency is likely to rally again by the end of the year. 

Bullish signals for Bitcoin

The first piece of data that seems to support this view is the flow of money into digital assets. According to a recent report by CoinShares, flows into digital assets last week amounted to $288 million, bringing the total since the beginning of the year to $8.7 billion.

In October in particular, these inflows increased dramatically, with Bitcoin being the clear leader, as of last week’s $288 million flows, $268 million went into Bitcoin. This is clearly a bullish signal for all analysts.

A second important aspect that could push Bitcoin’s prices up is the recent listing of the first two bitcoin futures ETFs on Wall Street. This fact will certainly push many institutional investors to invest in digital currencies through these derivative products, as it has already shown in the first days of listing.

The Proshares ETF has reached almost $1 billion in requests in its first day of listing, a figure never reached in such a short time by any other ETF before.

According to many analysts, the $70,000 mark, which is very close to current prices, could represent a sort of watershed towards the $100,000 mark, which some analysts expect to be reached by the end of the year.

Another very important signal of Bitcoin’s short-term bullish sentiment is that of on-chain metrics, the ratio of which to price is at 0.63, a far cry from the 0.75 of the previous high recorded in April, which was followed by a heavy fall in prices. This is a clear signal, according to experts, that there would still be room for a new Bitcoin rally in the coming weeks.

Bitcoin bullish
Bullish sentiment for Bitcoin: signs to monitor

Bitcoin as an anti-inflationary reserve

Another signal that could indicate an upcoming Bitcoin rally is the inflation figure, which is showing signs of rising worldwide. As is well known, Bitcoin is becoming, like gold, a kind of anti-inflationary store of value. Rising inflation and subsequent central bank measures on interest rates to bring it under control could cause Bitcoin to rise again.

Proof of this is that physical gold is also returning to its all-time highs. But according to the American billionaire Paul Tudor Jones, Bitcoin would be better than gold as an anti-inflationary instrument. This is how he had expressed himself during an interview with CNBC:

“It would be my favorite over gold at the moment. There’s a place for crypto. Clearly, it’s winning the race against gold at the moment”.

On the basis of all these considerations, the British investment company Standard Chartered already predicted at the end of September that Bitcoin would exceed the 100k mark by the end of 2021 or at the latest in the very first months of 2022.

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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