Bitcoin Nears $62,000 as Pullback Continues
Market Musings

Bitcoin Nears $62,000 as Pullback Continues

All of this comes as reports from Bloomberg suggest that the first-ever Bitcoin exchange-traded fund in the U.S. “risks becoming too popular for its own good.”

Bitcoin Nears $62,000 as Pullback Continues

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Bitcoin has witnessed a further pullback from the record highs clocked earlier this week.

The world’s biggest cryptocurrency retreated to lows of $62,117.41 in the early hours of Friday — a peak-to-trough fall of 7.19% from the all-time high of $66,930 seen Wednesday.

Although there are fears the current dip could continue into the weekend, several strategists remain confident that the latest breakout means that further upside lies ahead.

In a research report on Wednesday, Fundstrat wrote:

“Initial upside targets for Bitcoin above $65,000 lie near $72,500, then $89,000, and thought to be definitely within reach on this breakout of former peaks.”

This suggests that it may be a little bit ambitious for Bitcoin to break into six-figure territory — at least for this year anyway. 

All of this comes as reports from Bloomberg suggest that the first-ever Bitcoin exchange-traded fund in the U.S. “risks becoming too popular for its own good.”

Analysis by the news outlet indicates that the ProShares Bitcoin Strategy ETF is “on track to breach a limit on the number of futures contracts it is permitted to hold by the Chicago Mercantile Exchange.” 

This could mean there is a newfound sense of urgency for additional ETFs to be approved for trading by the U.S. Securities and Exchange Commission.

Unusual Blips and Big Profits

In other developments, Bitcoin’s price briefly suffered a flash crash to $8,200 on Binance.US because one of its institutional traders had a bug in their trading algorithm. The company added:

“We are continuing to look into the event, but understand from the trader that they have now fixed their bug and that the issue appears to have been resolved.”

Meanwhile, rough calculations suggest that — even despite BTC’s retracement — Tesla is sitting on some pretty healthy profits after adding the cryptocurrency to its balance sheet.

Rough estimates suggest that Tesla owns approximately 42,000 BTC — and initially paying about $31,600 apiece.

With Bitcoin trading at $62,945 as of Friday morning in London, this would indicate that the electric vehicle giant has generated paper profits of more than $1.3 billion.