- Bitcoin’s recent rally is being driven more by macroeconomic factors like a less hawkish Fed rather than just ETF hype, according to some analysis.
- Opinions are mixed on whether the ETF narrative is still playing a big role in bitcoin’s price surge, with some seeing it as a bullish driver while others think approval may signal a selling point.
- Indicators show strengthening bullish sentiment around bitcoin, with open interest and volatility hitting record highs, suggesting the market may be positioning for more upside.
Bitcoin Rally Driven by Macro Factors, Not ETF Hype
The recent bitcoin rally is being driven more by macroeconomic factors than expectations of a spot bitcoin ETF approval, according to analysis from QCP Capital. Weaker economic data and a less hawkish Fed tone are providing support.
Mixed Opinions on ETF Narrative
Some analysts see the ETF narrative still playing a key role in bitcoin’s surge. A false ETF approval report in October brought renewed attention. But others say once ETFs are approved, it may signal a selling point.
Bullish Sentiment Strengthening
Indicators are pointing to increased optimism around bitcoin’s price outlook. Open interest in bitcoin futures and options has hit all-time highs. Volatility has also picked up, suggesting the market may be positioning for more upside.
Bitcoin Rangebound Near $34K
Bitcoin has traded in a relatively narrow band between $34K-$35K over the past week. It rose 0.2% over the last 24 hours to around $34,665 as of writing.
Sentiment and technicals appear to be turning more favorable for bitcoin, although uncertainty around macroeconomic conditions persists. The crypto markets remain volatile amid mixed views on price drivers.