Bitcoin and Ether Could Hit All-Time Highs By Year’s End If SEC Approves Crypto ETF, Says Fundstrat | Currency News | Financial and business news

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Bitcoin and Ether could still hit record highs by the end of the year despite their recent selloff, Fundstrat said in a note on Wednesday. opportunity to buy as we anticipate a risky environment until the end of the year, ”said Fundstrat. Sign up here for our daily newsletter, 10 things before the opening bell.

Bitcoin’s current 33% pullback from its all-time high does not faze Fundstrat, with the company remaining confident that bitcoin and ether will hit record highs before the end of the year.

In a Wednesday note, Fundstrat said potential catalysts are near, which could help fuel an increase in the crypto space as long-term investors continue to hang on for life. These catalysts include favorable seasonality for crypto in October, the potential approval of a bitcoin ETF by the SEC, and the much-anticipated Ethereum network upgrades.

Bitcoin and Ether are each expected to rise 50% and 46% to eclipse their highs of around $ 65,000 and $ 4,380, respectively. And Fundstrat believes bitcoin can go even higher, with Tom Lee indicating a price target of $ 100,000 for the popular cryptocurrency earlier this year.

“Bears start hibernating in the fall” when it comes to bitcoin, Fundstrat said, pointing to favorable historical data for bitcoin price returns in October.

Since 2011, bitcoin has shown positive returns in October 60% of the time, with an average return of 32%. This compares to a weak September, which posted negative returns 70% of the time, with an average return of 15%.

Glassnode, Fundstrat

“The blue-chip crypto asset fared quite well in October, after often seeing appalling performances in September with meteoric rebounds,” Fundstrat said.

Meanwhile, Fundstrat noted that SEC Chairman Gary Gensler remained receptive to the idea of ​​a bitcoin ETF that would invest in futures and be registered under the Investment Company Act of 1940. And While a bitcoin mutual fund that invests in futures has only attracted $ 15 million in assets since launch, Fundstrat says that’s not the point.

“The most important point here is that it doesn’t matter how much capital flows into these futures ETFs as long as the bitcoin spot market is boosted by improving sentiment,” Fundstrat said.

Finally, the Ether should see an improvement in sentiment among investors as another highly anticipated network upgrade approaches, moving to a proof-of-stake model. “We expect there will be positive feelings around this stage, which could lead to an increase in speculative buying,” Fundstrat said.

“We are convinced that any short-term sell-off is an opportunity to increase its position as we always anticipate a risky environment until the end of the year to generate a race to record highs for Bitcoin and Ethereum,” a concluded Fundstrat.

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