Bull Market Seeds May Be Planted for Bitcoin. Bet on BTCU.

During the trading week ending August 21, Bitcoin rallied as the White House renewed its push for passage of the Clarity Act. That bounce implied that this week would be a test for the durability of Bitcoin’s rebound – and the leading cryptocurrency is passing in strong fashion.

For the seven days ending midday Thursday, August 27, Bitcoin notched an 11% gain and was hovering above $80,200. Those may be signs that a new bull market is afoot. If that’s the case, then aggressive traders may want to evaluate geared ETFs, such as the (BTCU).

A relatively new addition to Direxion’s expansive suite of leveraged ETFs, BTCU came to market in May and is designed to deliver 200% of the daily returns of a bellwether, plain vanilla spot Bitcoin ETF. So BTCU is easy to understand, but it’s still worth remembering that this is a leveraged ETF. With Bitcoin’s well-documented reputation for big moves in both directions, BTCU should be treated as a short-term trading vehicle, not a long-term holding.

For traders considering BTCU over the near-term, it’s also worth noting that some experts believe that the seeds of a new Bitcoin bull market are being planted.

“Bitfire Research finds that the move shows some characteristics of an early bull market, including a sharp reversal from lower levels, a rapid recovery and continued consolidation near previous highs without a clear breakdown,” said Allen Ding, director of research at Bitfire.