Bitcoin is inches away to reach $60,000 between ETF speculation

October 18, 2021: -Bitcoin climbed Friday to hit a five-month high and was inches away from hitting $60,000.

The world’s biggest cryptocurrency increased high $59,920, notching its highest level since May. 10. But it is struggling to break above the $60,000 mark.

According to Coin Metrics data, Bitcoin was in the previous trading 2.5% higher for the last 24 hours, for $59,112.

According to analysts, traders are optimistic about the chances of the U.S. Securities and Exchange Commission which is giving the green light to the first bitcoin futures exchange-traded fund.

On Tuesday, the ProShares Bitcoin Strategy ETF is scheduled to debut at the New York Stock Exchange, and experts believe the SEC is unlikely to object to the product.

Approval of an ETF giving mainstream investors exposure to bitcoin would be a landmark for the crypto industry, pushing for greater acceptance of digital assets on Wall Street.

“The ETF news is being priced in with the market expecting an approval on Monday. This is the drive of the price up,” Vijay Ayyar, head of Asia Pacific at cryptocurrency exchange Luno, told CNBC.

“However, at high time frame resistance here nearly 58-60K, hence a rejection on the ETF application could send Bitcoin to 53-55K levels. But overall, the trend is still bullish, and there are several other ETF applications in the pipeline as well.”

On Friday, not all cryptocurrencies got a boost from the ETF news. Ether, the second-largest coin, increased 3.7% to $3,777. Although, XRP was down about 0.6% while decreasing by 0.3%.

This year, Bitcoin and other cryptocurrencies have been on a wild ride. The number one digital coin hit an all-time high of almost $65,000 in April before slumping sharply on the back of a crackdown on the crypto market in China. It’s still more than doubled in price so far this year.

Regulators have been taking a tougher line on crypto, as interest from investors has surged. On Thursday, the industry has to put up a fight, though, with Coinbase calling on the U.S. to create a regulator to oversee digital assets.

This week, Bank of England Deputy Governor Jon Cunliffe is warning cryptocurrencies could spark a global financial crisis similar to the 2008 crash.

“When something in the financial system is growing fast and growing in largely unregulated space, financial stability authorities have to sit up and take notice,” Cunliffe said on Wednesday in a speech.