Prices of nearly all major cryptoassets traded higher today, as sentiment among market participants improved following a Russian idea (a very preliminary one) of accepting bitcoin (BTC) for oil & gas, news that an oil giant is mining BTC, and speculations that a bitcoin spot-based exchange-traded fund (ETF) could launch next year. Moreover, TerraIt has also begun to implement its USD 10bn BTC Plan, which will push the price higher.
But, it remains to be seen if this upward movement is sustainable.
BTC traded at USD 44,886 at the time of writing (14.47 UTC) and was up almost 10% over the past seven days. ETH traded at USD 3,175, a 5% increase over the previous 24 hours and a close to 13% for the week.
The current bitcoin price has fallen from a peak of just over USD 45,000 early in the day. This is the highest price Bitcoin has traded since March 2, when it briefly traded above its key level.
Bitcoin spot ETF to be launched in 2023
Eric Balchunas is the senior ETF analyst at ETF Analyst Eric Balchunas. He achieved a respectable performance in the two largest cryptoassets. Bloomberg, shared insights from a report that argued a ‘spot bitcoin ETF’ that holds actual bitcoin instead of futures contracts could be approved in the US by the summer of 2023.
According to the report, which Balchunas shared a screenshot of on Twitter, a change of the definition of ‘exchange’ by the US Securities and Exchange Commission (SEC) could bring crypto exchanges under the SEC’s jurisdiction.
“After that (which could take a year) look for ETFs to get green light,” the analyst wrote.
Russian BTC roulette
Also adding to the bullish sentiment is a report of a senior Russian lawmaker who appeared open to the idea of selling Russian oil for bitcoin or national currencies of countries deemed as “friendly” to Russia.
“We have been proposing to China for a long time to switch to settlements in national currencies for rubles and yuan. With Turkey, it will be lira and rubles,” Pavel Zavalny, the chair of Russian Duma’s energy committee, said in an interview with Rossiya Segodnya, before adding:
“If [trade needs to be done in] bitcoin, we will trade in bitcoin.”
Asked by CNBC about the potential use of bitcoin by Russian entities to avoid sanctions, US Treasury Secretary Janet Yellen did not directly address the issue, but admitted that “crypto has grown by leaps and bounds.”
She added that the asset class “is playing a significant role, not so much in transactions, but in investment decisions of lots of Americans.”
Exxon Mobile expands bitcoin mining pilot
Further, a report from Bloomberg on Thursday revealed that the American oil & gas giant Exxon MobileThe company has been mining Bitcoin using excess natural gasoline as its power source. It is now looking to expand.
The mining is part of a pilot project that launched in North Dakota’s Bakken region in early 2921, with an expansion now planned for Alaska, the Qua Iboe Terminal in Nigeria, Argentina’s Vaca Muerta shale field, Guyana and Germany, the report said, citing “people familiar with the matter.”
Excess natural gas is usually burned off on site – what’s known as flaring – but Bitcoin mining has proven to be a viable way to make use of the otherwise wasted energy. (Two Texans use Flare Gas to Net USD4M on Bitcoin Mining. Plan USD 20M by 2022
A bitcoin ‘decoupling’
Willy Woo, an on-chain analyst, commented on the current market situation. said that “macro headwinds” and bitcoin fundamentals are now pointing in opposite directions.
With spot demand for BTC continuing to climb, and a return to more demand for bitcoin futures, he said the market is now “fully reset” and added that “accumulation has already happened.”
“Probably a decoupling will continue,” the analyst said, sharing on-chain data to back up his thesis.
According to data from, the funding rates for bitcoin futures have not shown any indication of where the price is headed over the past eight hours. Rates on most exchanges remain at zero. Coinglass.
A funding rate of zero indicates neutral market sentiment. Positive rates are typically seen during rising prices, while negative rates are often seen during falling prices.
Some industry players think that this upward trend might not be sustainable. However, a rally is not impossible.
Leah Wald, CEO of digital-asset investment management manager, stated that Bitcoin lacks a real catalyst to propel it higher. Valkyrie FundsBloomberg reported that, said that the momentum was still “slowly building” for another rally, even though this is not being reflected in price action right now.
“If we end the year around USD 40,000, I wouldn’t complain at all, I would be pretty happy,” Mati Greenspan, Founder and CEO of Quantum EconomicsBloomberg reported that it was still possible to run for USD 60,000 or USD 75,000
– Bitcoin’s USD 43K Tests – Be cautious, but be ready for some happy weeks
– Fed Can’t Stop Prices From Going Up Anytime Soon, But There’s Good News, Too
– The Ukraine War: How Russia’s Aggression Affected Bitcoin & Crypto and What Might Happen Next
– Are Russia’s Elite Really Using Cryptocurrency to Evade Sanctions?
– ‘Big Holes’ Undermine Russia Sanctions – And It’s Not Crypto (Psst! It’s Traditional Politics & Finance)
According to a less optimistic survey, Bitcoin could reach USD 93K in this year
– Goldman Sachs Claims Adoption Won’t Boost Crypto Prices, Talks Down Stablecoin Plans
Source: Crypto News