The fourth quarter of 2021 is looking “historically bullish” for Bitcoin (BTC), according to one blockchain researcher.
Lucas Outumuro, head of research at the blockchain intelligence firm IntoTheBlock, says on Twitter that three factors are driving BTC optimism:
1. The potential approval of a Bitcoin exchange-traded fund (ETF).
2. The upcoming Taproot upgrade.
3. The “feedback loop” between BTC’s price and fundamentals.
Outumuro notes that Bloomberg analysts have estimated there’s a 75% chance a Bitcoin ETF gets approved as early as this month.
9/ The approval of a highly-anticipated Bitcoin ETF is driving expectations
Bloomberg analysts give a 75% chance of a Bitcoin ETF being approved in US markets as early as October https://t.co/X07qMRyhnM
— Lucas Outumuro (@LucasOutumuro) October 12, 2021
Last week, the U.S. Securities and Exchange Commission (SEC) approved the Volt Crypto Industry Revolution and Tech ETF (BTCR). Though it’s not a straightforward Bitcoin ETF, the product offers investors indirect exposure to BTC via companies that have significant BTC holdings or are involved in the Bitcoin industry.
Outumuro also notes that Taproot is scheduled for November and comes more than four years after the last major Bitcoin upgrade.
Taproot is a soft fork that aims to enhance Bitcoin’s privacy measures, smart contract flexibility, and ability to mask complex transactions on the blockchain. It is the first major upgrade since Segwit (Segregated Witness) in 2017.
Lastly, Outumoro points to Bitcoin’s solid fundamentals. The blockchain researcher notes that 99.2% of all Bitcoin transaction volume this month is coming from transactions of more than $100k, which he argues is evidence that whales and institutions are actively using BTC.
“The recent increase in institutional activity and low correlation with traditional markets is favorable for investors looking to get in. This then drives better fundamentals, bringing more investors and so on.
Overall, Bitcoin is building strong momentum in a historically bullish quarter. Driven by strong fundamentals and potential catalysts, it is likely that we are just at the beginning of an exhilarating end of the year.”
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Giovanni Cancemi/Andy Chipus
