Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Bitcoin falls from peak, U.S. ETF support questioned

10/21/2021 | 02:54pm EST
Representation of cryptocurrency Bitcoin is placed on PC motherboard in this illustration taken

NEW YORK/LONDON (Reuters) -Bitcoin on Thursday retreated from its all-time high struck a day earlier after the debut of the first U.S. bitcoin futures exchange-traded fund, while analysts questioned the impact on cryptocurrency investment flows.

The world's largest cryptocurrency was down 4.35% at $63,122.78, at 2:10 p.m. Eastern time, after hitting a record $67,016 on Wednesday.

Earlier, just after 7:30 a.m., Bitcoin's price briefly plunged around 87% to $8,200, but only on Binance's U.S. exchange. The flashcrash seemed to have been caused by a bug in an institutional trader's algorithm, a spokesperson for Binance U.S. said.

"We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved," the spokesperson said.

Bitcoin's recent rally - six-months after its previous top of $64,895 - was fueled by the debut of the ProShares Bitcoin Strategy ETF.

A dozen other futures-based bitcoin ETFs could launch in the coming months, with The Valkyrie Bitcoin Strategy ETF set to begin trading on Friday under the ticker BTF. The VanEck Bitcoin Strategy ETF expected to begin trading next week under the ticker XBTF.

Investors have bet the long-awaited launch of bitcoin ETFs will lead to greater investment from both retail and institutional investors.

Yet analysts at J.P. Morgan voiced doubt over how long-lasting the boost to bitcoin's price from the ProShares ETF, which trades under the ticker BITO, would be.

"Will the launch of BITO by itself bring significantly more fresh capital into bitcoin? We doubt it given the multitude of investment choices bitcoin investors already have," they wrote in a note.

"The bulls are seeing this ETF as a new investment vehicle that would open the avenue for fresh capital to enter bitcoin markets. The bears are seeing the new ETF as only incremental addition to an already crowded space of bitcoin investment vehicles."

Some players see inflation risks, rather than new investment products, as driving bitcoin's rally.

Still, others predicted that bitcoin's latest peak could lead to further gains this year, but not without headwinds.

"Bitcoin's bullish momentum could last a lot longer, but the global energy crisis should not be ignored," said Edward Moya, senior market analyst at Oanda. "Cryptocurrency energy consumption could draw scrutiny from many governments that are battling energy shortfalls."

If the current momentum continues, bitcoin could make a run towards the $75,000 region, but a "greenlight towards $100,000 seems difficult until the global energy crisis is in the rear-view mirror," he said.

Ether, the world's second largest cryptocurrency, rose 1.87% to $4,090.30 - close to its all-time high of $4,380, hit in May.

(Reporting by John McCrank in New York and Tom Wilson in London; Editing by Edwina Gibbs, William Maclean and Alison Williams)

By John McCrank and Tom Wilson


© Reuters 2021
Latest news "Economy & Forex"
03:13aCzech Republic reports 20,315 daily coronavirus cases
RE
02:30aGhana's parliament votes down 2022 budget over electronic tax
RE
02:20aMINISTRY OF FINANCE OF REPUBLIC OF INDIA : Income Tax Department conducts search operations on two major real estate developers of Ludhiana
PU
02:10aExplanatory Notes on the Revised Risk Management Directive
PU
02:10aBANK OF GHANA : Risk Management Directive
PU
01:57aELON MUSK : India tells public to shun Musk-backed Starlink until it gets licence
RE
01:55aMalaysia police to look into claim ATA whistleblower beaten by police
RE
12:45aIndia's Paytm Sept net loss widens, says maintains growth momentum
RE
12:30aPRIME MINISTER JANEZ JANŠA : ASEM is a unique forum for promoting cooperation between Europe and Asia
PU
11/26Black Friday draws U.S. shoppers but many shun stores for online
RE
Latest news "Economy & Forex"