Bitcoin price hits $56,000

On Oct. 8, Bitcoin (BTC) surpassed the week’s four-month highs, rising $2,000 in two hours.

On Bitstamp, BTC/USD touched slightly over $56,150 in a new display of bullish enthusiasm.

The pair spent Thursday consolidating after a strong rise on Wednesday peaked out at $55,800, which remained the level to beat.

Beyond price movement, traders’ emphasis remained on the probability of an exchange-traded fund (ETF) clearance from a US regulator — and its ramifications.

As previously reported, there is a significant likelihood that a futures-backed Bitcoin ETF, rather than a typical spot-based product, will be approved this month.

However, as has been the case during the years-long struggle for such clearance, detractors continue to contend that an ETF might end up doing more harm to Bitcoin than good. Futures, in particular, were scrutinized this week.

In a Twitter thread, macro researcher Alex Krueger stated, “Few realize this bitcoin ETF if authorized will include futures as underpinning.”

“Because futures are often in severe contango (futures > spot), the ETF would *sell low to buy high* at rollover, resulting in Contango Bleed.” Assets having a high level of contango tend to fall in value.”