- The SEC has approved the first leveraged MicroStrategy ETF
- Market indicators suggested an upward move for Bitcoin
The SEC is in the news today after it approved the first leveraged MicroStrategy ETF, launched by Defiance as a 1.75x fund ($MSTX). This update was first shared by Bloomberg’s ETF Analyst Eric Balchunas on X.
Though initially intended as a 2x ETF, the SEC’s restrictions limit its leverage. This ETF will be highly volatile, similar to a 13x SPY ETF, surpassing even the $MSOX (2x weed ETF) in risk.
Source: Eric Balchunas on X
Defiance has beaten Tuttle to market with this product, although Tuttle is also attempting a 2x MicroStrategy ETF.
The market for highly volatile ETFs is strong, evident from the $5 billion Nvidia 2x ETF. This approval may be a sign of greater buying pressure and bullish sentiment for Bitcoin.
USD cycles, treasury, & BTC bull markets
Bitcoin [BTC] tends to rise most sharply when the U.S dollar ($DXY) weakens. The Federal Reserve’s actions and increased global liquidity are likely causing the DXY to decline.
The DXY has now hit equal highs, indicating a potential reversal. As the DXY drops, Bitcoin is expected to climb higher, potentially surpassing its all-time high on the charts.
Source: Bloomberg
Treasury market volatility is a crucial yet often overlooked factor in shaping risk asset strategies. It’s a major concern for Federal Reserve Chair Jerome Powell and his team.
To prevent market instability, they aim to reduce treasury volatility. As a result, this suppressed volatility may shift to Bitcoin, potentially driving its price higher.
Source: Bloomberg
Bitcoin is demonstrating strong momentum too, breaking above the Short-Term Holder Realized Price of approximately $65K.
If this level is reclaimed on the charts, it could serve as a foundation for Bitcoin to push towards the $70,000-mark and possibly beyond. This performance reinforces Bitcoin’s position as a top choice for crypto investment.
Source: Bitcoin Magazine PRO
Leverage liquidations and RSI signal bullish sentiment
Leverage liquidation hunting is a key factor causing price movements across high timeframes.
Bitcoin could climb and hold above $60k to trigger liquidations, where $93 million is positioned between $60-60.4K, and another $75 million between $61.8-62.2K.
This could drive Bitcoin to surpass its previous all-time high of $74,000, potentially leading to even higher prices.
Source: Coinglass
Finally, Bitcoin’s Stochastic RSI signaled that BTC will enter a “Rebound Zone” in the coming months. This is a key opportunity for traders and investors to accumulate Bitcoin before a potential surge in its price.
What this indicator also implies is a high likelihood of BTC hitting new highs, reinforcing the idea that now is a strategic time to invest in Bitcoin.
Source: Trader Tardigrade, TradingView