Blockchain

BTC price hits $56K as bulls return and talk focuses on Bitcoin ETF approval

A day of consolidation ends in fresh bullishness for Bitcoin price action, which continues to close in on final resistance below all-time highs.

Bitcoin (BTC) returned to beat the week’s four-month highs on Oct. 8, climbing $2,000 in two hours.

BTC price hits $56K as bulls return and talk focuses on Bitcoin ETF approval1BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC’s price beats Wednesday’s high

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting just over $56,150 on Bitstamp in a fresh show of bullish momentum.

Wednesday’s dramatic uptick had topped out at $55,800, this remaining the level to beat as the pair then spent Thursday consolidating.

Amid anticipation of fresh upside from traders, talk beyond price action continued to focus on the likelihood of an exchange-traded fund (ETF) approval from United States regulator — and its implications.

As Cointelegraph reported, confidence is high that a futures-backed Bitcoin ETF will get the go-ahead this month, if not a traditional spot-based product.

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As has been the case throughout the years-long battle to get such an approval, however, critics continue to argue that an ETF could ultimately cause more harm than good to Bitcoin. In particular, futures came in for scrutiny this week.

“Few understand this bitcoin ETF if approved would have futures as underlying,” macro analyst Alex Krüger explained in a Twitter thread.

The Grayscale Bitcoin Trust, the fortunes of which commentators argue are already being impacted by the prospective ETF approval, continued to see negative share price relative to spot, this passing -17% Thursday.

The firm’s CEO, Michael Sonnenshein, has reiterated plans to convert potentially every fund to an ETF in the future.

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