Buy the dip, sell the bounce. That seems to be the narrative with crypto currencies when they experience a sharp move down. Investors and traders will reflect on the missed opportunity to have bought some cryptos including Bitcoin (BTC) and Ethereum (ETH) on the sharp moves down earlier in September. BTC reached lows of $39,276.54 but is now trading back close to $60k currently at $59,279.79 gaining 2.17% with Ethereum (ETH) trading $3,812.59 gaining 4.71% from previous lows of the same period reaching $2,638.42. As we move to periods of higher interest rates, more fundamental support of the price movement will be sought of the asset class. At going to print BTC is now trading at $62136.29 and ETH $3847.08.
The spike was supported by a Bloomberg report late Thursday that the US Securities and Exchange Commission (SEC) will not block futures exchange-traded fund (ETF). With around 40 fillings being reviewed two proposals are likely to launch being Invesco and Proshares. As more regulation around the cryptos come into effect and its increased use as an investment asset through being included in investment portfolios, demand is set to increase.
However with BTC and ETH trading near record highs, some traders and investors seem to have missed the boat to get into the action while prices were lower. There are opportunities still available through “altcoins” which is shorthand for the “alternative coins to Bitcoin”. These were launched as alternative to the popular and market dominate Bitcoin and in other ways improving on BTC’s efficiency. These “altcoins” include, Litecoin, Ripple, Solana, Polkadot, Cardano and Binance Coin to name a few. As these are growing in popularity and use relative to BTC and ETH investors will observe discount opportunity to trade on the discounted priced realizing a probable profit on the move higher.
Terence Hove – Exness Financial Markets Analyst