- The launch of Ether futures ETFs failed to generate significant trading volumes
- Concerns about an impending economic downturn reiterated by US Federal Reserve representatives
- Diminished activity for leverage longs, reduced participation by institutional investors, and decreased trading volumes
- The anticipation for a spot Bitcoin ETF approval drops
On Oct. 2, Bitcoin (BTC) saw a 5.5% intraday increase to $28,600 but lost momentum as the launch of Ether (ETH) futures ETFs failed to generate significant trading volumes.
US Federal Reserve representatives reiterated concerns about an impending economic downturn, which also impacted Bitcoin’s rally.
Three key trading metrics indicate a lack of support for Bitcoin’s price: spot market volumes, derivatives activity, and confidence in the approval of a spot Bitcoin ETF.
Macroeconomic forces exert downward pressure on Bitcoin price
The US Federal Reserve Vice Chair for Supervision stated that he anticipates a slowdown in economic growth due to higher interest rates constraining economic activity.
Bitcoin trading metrics show diminished activity for leverage longs
Bitcoin monthly futures trade below the 5% neutral threshold, indicating a lack of demand for leveraged long positions.
Spot trading activity on traditional exchanges has declined, signifying reduced participation by institutional investors.
Investors’ expectation for a spot BTC ETF drops
The anticipation for a spot Bitcoin ETF approval continues to decrease, despite favorable court rulings and the launch of Ether futures-based ETFs.
The Grayscale Bitcoin Trust continues to trade at a discount compared to its Bitcoin holdings, indicating a lack of confidence in the approval of a spot Bitcoin ETF.
Bitcoin’s inability to surpass the $28,500 resistance level, combined with concerns about the economy, makes it less likely to rally above this level in the short term.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of coinpostman.
