Bitcoin Market Reacts To Bitcoin Spot ETF Rejection — Where Is The Bull Run Headed?
Bitcoin spot ETF rejected: Bitcoiners have been waiting for a spot ETF approval for the past decade. Has the SEC’s latest rejection shaken out the Bitcoin bulls?
Covered:
- How the Bitcoin Market Reacted
- Where Are Bitcoin Metrics Pointing?
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Dear Bitcoin,
Please stop going down pic.twitter.com/nsIRfBDDpi
— RookieXBT (@RookieXBT) November 12, 2021
It’s been a tough week for Bitcoin bulls after failing to breach the $70,000 barrier and subsequently hearing SEC Chairman Gary Gensler’s decision to reject mutual fund manager VanEck’s Bitcoin spot exchange-traded fund (ETF). Despite the rejection, Bitcoin bulls remain unphased as on-chain metrics tell a more bullish story.
How The Bitcoin Market Reacted
An official report from the SEC explains the commission’s rejection of VanEck’s Bitcoin Trust, claiming that the CBOE had fallen short in its efforts to convince the SEC that investors would be protected against fraudulent trading.
Historically, an ETF has never been rejected within three days of its initial launch date, making VanEck’s the first ETF to receive a rejection within the
The news didn’t do much to deter the Bitcoin bulls, however. In fact, it seems as though the announcement unironically marked the local bottom for the time being.
Bitcoin had a strong bounce off the $62,570 level and is currently trading at $63,860.
Certain analysts, like Bloomberg’s James Seyffart, believe that an Ethereum Spot ETF is more likely than a physically-backed one for Bitcoin, based on recent tepid public displays of enthusiasm for an ETF by Gensler. It’s hard to know when the spot ETF will come, but with the approval of a Futures ETF already confirmed, institutional investors are hungry to get more direct exposure to the asset class.
Bitcoin Spot ETF Rejected: Where Are Bitcoin Metrics Pointing?
Despite all the markets being down on the day, Bitcoiners came out today to highlight multiple on-chain indicators that point to blue skies ahead for the king crypto asset.
Bitcoin bull Anthony Pompliano pointed out that the Lightning Network BTC capacity just hit an all-time high of 3,125 BTC today, indicating that Bitcoin adoption is growing to new heights.
The Lightning Network has reached an all-time high capacity of 3,215 bitcoin. pic.twitter.com/9XcNmlIhRG
— Pomp (@APompliano) November 12, 2021
Preston Pysh notes that there’s a massive supply shock incoming based on Glassnode data from the Bitcoin Realized Cap HODL Waves ratio. Historically, Bitcoin bull cycles have been accompanied by a hot run-up from the HODL waves as indicated.
Get ready Hodlers. All the mouth-breathers that front-ran the news this morning and “cleverly” traded their #Bitcoin for fiat are about to have their bell rung. Many are losing sight of the massive supply shock that’s inbound. H/T @DylanLeClair_ pic.twitter.com/DQu3D3Quzb
— Preston Pysh (@PrestonPysh) November 12, 2021
The chart is showing that HODL waves have pulled back and are ready to start another climb. Bitcoin Archive chimed in to clear up any confusion about Pysh’s metric and confirm that the supply shock is in fact real.
For those who don’t see it, we have completed the first hodl wave and poised to repeat a second – just like 2013. If you look closely, the second hodl wave has already started.
Supply shock is real
— Bitcoin Archive (@BTC_Archive) November 12, 2021
Finally, on-chain metrics analyst Will Clemente also added that long-term holders have shown the first signs of selling into strength, which typically means that investors can expect to see future price appreciation.
Long-term holders buy BTC into weakness and sell into strength.
We've just gotten our first red prints on LTH net position change in over 6 months, showing bull market distribution has begun. pic.twitter.com/ON0pqX7J35
— Will Clemente (@WClementeIII) November 12, 2021
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Text source: CryptosRus
