Dear Teroxx Community,

This week we saw a digital asset market that has been bullish for bitcoin, but not for all altcoins.

Weekly overview

As usual, we are also providing detailed videos for those who want to delve deeper into the subject.

Latest crypto news

Bitcoin jumps back to US$56,000, ETFs fuel sentiment.
While traders gratefully accepted the new tailwind, hopes around the approval of bitcoin index funds (ETFs) in the US also rekindled, fuelling sentiment all the more. As Cointelegraph had reported, experts are confident that at least ETFs based on bitcoin futures will soon get the green light.
However, there are also cautionary voices who fear that such index funds are more of a disadvantage than an advantage for Bitcoin. Especially for the futures of the market-leading cryptocurrency, this could possibly be negative.
“Not everyone realises that the Bitcoin ETFs would be based on futures,” as analyst Alex Krügert, for example, points out:
“Futures usually have strong contango (futures price > spot price), which causes the ETF to sell low but buy high on rollover, resulting in contango bleed. Financial products with strong contago bleed fall in price.”

IMF and SEC don’t want a bitcoin ban!
After China’s crypto ban, the guardians:inside of the US financial system have to take a stand. After Jerome Powell, the head of the US central bank Fed, spoke out against a ban on cryptocurrencies, Gary Gensler followed suit last week. At a hearing before the US Congress on 5 October, the head of the US Securities and Exchange Commission (SEC) distanced himself from the approach of the government in Beijing. According to Gensler, regulatory efforts rather have an integrative task. Not only the SEC, but also the International Monetary Fund (IMF) recently took a stand on cryptocurrencies. On 3 October, the organisation published a report discussing crypto-related opportunities and risks for developing countries. On the one hand, the IMF acknowledges that Bitcoin and blockchain technology offer potential for more inclusive financial services, but only through global and understandable regulation.

A new Bloomberg report again raises the question of whether Tether’s reserves are really fully covered. Bloomberg journalist Zeke Faux has made several allegations about Tether in the report in question, including the accusation that Tether CFO Giancarlo Devasini is using the company’s ‘reserve assets to make investments. This would again contradict the statement that Tether’s assets are fully covered at all times. Tether responded by saying that the report was a “bad attempt” to ruin the reputation of the stablecoin issuer with “rumours and misinformation”. Accordingly, Tether questions the credibility of the reporter’s sources, saying they are merely trying to “discredit Giancarlo Devasini and the Tether management”. In fact, the journalist merely made a viral claim – without providing any evidence.

Technical term of the week

Bear Trap: Describes a market situation in which a “false” market condition occurs. A common situation in the market is that market movements seem to indicate an imminent downturn in a security, but actually lead to a steady or rising price.

Crypto Market

Last week we saw market moves that continued to be positive for Bitcoin and some large caps coins.After the market was able to bullishly break away from the support levels at ~$41,000 just in time for the turn of the quarter and leave resistance after resistance behind, this led to a highly positive market situation. Altcoins were able to take advantage of these movements as well and thus the market rose sharply within a few days. After an initial sideways movement, volatility decreased below half of the resistance of ~$50,000, but there was still no selling (profit taking), indicating a further upswing. This occurred and with the break of the psychologically important level, another jump in the market up to ~$56,000 followed. Altcoins, however, could not take advantage of these latest bounces and could not sustain the bullish trend and saw first major profit-taking.This suggests that the market is currently strongly driven by the US theme (ETF approvals) and that bitcoin dominance is growing and capital is being shifted from altcoins to bitcoin.

BTC/USDT, 60

Bullish outlook: $60,000 as the next big market resistance. If this is broken and the US allows Bitcoin ETFs, a retest of the previous all-time high would be a real possibility.

Bearish outlook: If the market overheats, there could be a quick series of sell-offs that could push bitcoin back towards the $50,000 level.