Excitement has spread across the cryptocurrency world, with Bitcoin reaching the $35,000 mark for the first time since 2022, buoyed by optimism that the first spot ETF approval could be possible. The eToro analysts underline this. The US federal appeals court upheld Grayscale Investment’s victory against the SEC, while BlackRock, the world’s largest asset manager, launched the iShares Bitcoin Trust on the DTCC under the ticker $IBTC. It is important to underline that this does not constitute confirmation of the actual approval of the ETF, but the chosen name potentially anticipates its imminent launch. Furthermore, although Bitcoin has returned to trading below $35,000, it has increased by more than 103% since the beginning of the year.
Between quarterly reports and government bond yields, what attracted the markets’ attention was X, formerly Twitter, which dominated the scene thanks to the post by Bill Ackman, CEO of Pershing Square – continued eToro in the press note -. The post announced the closing of short positions in US Treasuries, suggesting a risk in shorting the market in such an uncertain environment. As indicated by the chart below, the market reacted to this announcement with a noticeable change in mood, as evidenced by the intraday decline (from +6% to -6%) in the VIX and the reversal of the bullish trend in Treasury yields at 10 years.
Today, the focus will primarily be on the health of the economy in both the Eurozone and the United States in October. Preliminary PMI data suggests declines in both the manufacturing and services sectors in the US, with the latter expected to contract for the first time. Meanwhile, in the euro area, the consensus expects relatively stable figures for both sectors. Another important publication for today – concludes the analyst of the trading platform – will be the survey on ECB bank loans, in view of Thursday’s meeting, with attention focused precisely on the transmission of monetary policy.
