Bitcoin (BTC) displayed a positive trend during the first U.S. trading day of the week but faced some setbacks as the U.S. 10-year yield surged to its highest level in over 16 years, resulting in a 1.57% dip in the last 24 hours for the world’s largest digital asset.
Concurrently, the much-anticipated ether futures exchange-traded funds (ETFs) struggled to attract investor interest, recording low volumes on their debut trading day.
As the day concluded, Bitcoin was on track to end the U.S. trading day slightly below $28,000, experiencing a 3% increase, according to CoinDesk Indices data.
In comparison, ether traded at approximately $1,670, showing a modest decline for the session. The CoinDesk Market Index (CMI) indicated a 1.6% increase over the past 24 hours.
In equities, Monday witnessed a mixed performance in stocks after U.S. lawmakers averted a government shutdown with a stop-gap bill over the weekend.
Simultaneously, interest rates surged, with the U.S. 10-year Treasury yield rising by another 11 basis points to 4.69%. This surge came in response to unexpectedly strong manufacturing data, underscoring the resilience of the U.S. economy.
The ISM figures stood at 49, surpassing the predicted 47.7, implying the possibility of further rate hikes.
Amidst these market dynamics, the cryptocurrency industry entered October, historically one of its most vital months.
The crypto market, particularly bitcoin, has witnessed a significant rally lately, propelled by factors such as the SEC’s approvals of ether futures ETFs and other governmental decisions, noted in a recent QCP Capital report.
Bitcoin has experienced a 15% gain in the past two weeks. However, QCP has expressed concerns about the sustainability of this rally, citing shifts in demand and historical data that hint at potential market downturns.
QCP emphasized, “We would even go further to say a futures-only ETF is arguably detrimental to spot price – as it potentially directs demand away from the spot market into a synthetic market.” They further mentioned leveraging this rally to acquire downside hedges, anticipating resistance around the $29,000-$30,000 mark.
Regarding the newly launched ether futures ETFs, trading volumes remained subdued throughout the trading day.
Dexterity Capital Managing Partner Michael Safai shared his perspective, acknowledging that even if these ETFs don’t drive significant price changes, it’s part of the natural asset behavior, asserting that “ETF issuers don’t know the markets as traders do.” He added, “Their optimism is misplaced; anyone who wants bitcoin or ether surely has it.”