Cryptos are Trying to Rally- BITO and BITQ Could Explode

Bitcoin, the leading cryptocurrency, has been the leader for years, and in the current rally, Bitcoin has taken the leadership baton. After falling to $24,815.78 on June 15, Bitcoin exploded 26.5% to a new high for 2023 at $31,392.56, the highest price in a year since June 2022. Bitcoin was trading above the $30,000 resistance level on Friday, June 30.

Ethereum, the second-leading cryptocurrency, rose 18.7% from $1,627.227 to $1,932.774, underperforming Bitcoin. Moreover, Bitcoin rose to a new 2023 high, while Ethereum remains well below its mid-April $2,137.77 peak for 2023. Ethereum was around the $1,850 level on June 30.

The cryptocurrencies have rallied, and if the price action over the past years is a guide, it could be on the verge of an explosive bullish move. Bitcoin is the leader of the crypto pack, and its performance is a sign that this rally could be for real.

 

Regulations on smaller cryptos could be more onerous- The number of cryptos continues to rise

• SEC Chairman Gary Gensler believes many cryptos are securities and subject to regulation.
• Chairman Gensler said, “There is lots of innovation, but plenty of hype.”
• The SEC has sued Binance and Coinbase, and more regulatory actions are on the horizon.
• Senator Elizabeth Warren is “building an anti-crypto army” to combat systemic risk and other abuses.

Bitcoin is on the edge of a bullish springboard at the $30,000 level

• Bitcoin prices have rallied to a new high for 2023 at $31,392.56 on June 23.
• Technical resistance stands at the May 2022 $32,329.54 high.
• Bitcoin was just above $30,000 per token on Friday, June 30.
• Bitcoin nearly doubled from the November 2022 low at the current price level.

BITO is a Bitcoin futures ETF with two regulatory layers

• BITO is an ETF that tracks CME Bitcoin futures prices.
• BITO rallied over 76% from $9.48 in November 2022 to $16.77 on June 30.
• BITO offers two regulatory levels. The CFTC regulates the CME futures, and the SEC the ETFs that trade on NYSE Arca.

BITQ tracks Bitcoin prices

• BITQ is the Bitwise Crypto Industry Innovators ETF that holds shares in Bitcoin-related companies, including, but not limited to, platforms and miners.
• BITQ moved 146% higher from $3.20 in December 2022 to $7.89 on June 30.
• BITQ is regulated by the SEC as it trades on NYSE Arca, and its holdings are publicly traded, regulated companies.

Volatility involves risks- Capital invested is at 100% risk

• Investing in cryptos, related companies, or ETF products is a misnomer, as risk makes them speculative.
• The potential for significant profits comes with commensurate risks of loss.
• Only invest capital you can afford to lose.
• Trend-following and the boom-and-bust history suggest another boom period could be on the horizon for Bitcoin, the leading cryptocurrency.
• Cryptos and blockchain reflect technological innovation in finance. The debate over the future of the asset class with a $1.17 trillion market cap remains heated.