Stacks Rockets 25% Higher In A Single Week: The Factors At Play

The price of Stacks (STX) experienced a sustained rebound, driven by a prevailing sentiment of positivity within the cryptocurrency sector. STX had a significant increase, reaching a peak of $0.680, which represents the highest value observed since July 14th.

Stacks is a layer-1 blockchain solution aiming to enable smart contracts and decentralized applications on the Bitcoin network without altering its core features, like security and stability.

It operates through the Stacks token (STX), which powers smart contract execution, transaction processing, and asset registration on the Stacks 2.0 blockchain. This enhances Bitcoin’s capabilities without requiring a fork or changes to its original blockchain.

Stacks (STX) Rack Up 26% Gain

At the time of writing, STX was trading at $0.640, up 1.5% in the last 24 hours, and registering a solid 26% increase in the last seven days, data from crypto market tracker Coingecko shows.

STX price action today. Source: Coingecko

The surge in STX is attributed to the prevailing optimism among investors on the potential acceptance of a spot Bitcoin ETF by the US Securities and Exchange Commission.

In a recent statement, Gary Gensler affirmed that the agency is currently engaged in an ongoing examination of the various proposals for exchange-traded funds (ETFs).

It is widely anticipated by analysts that the commission is likely to provide approval to proposals put up by established ETF companies such as Blackrock, Invesco, Infidelity and Franklin Templeton.

STXUSD trading at $0.636 on the weekend chart on TradingView.com

This expectation is influenced by their considerable knowledge and experience in the exchange-traded fund (ETF) sector. Given its previous setbacks in lawsuits against Grayscale and Ripple Labs, the SEC also hopes to head off any prospective legal challenges.

Meanwhile, Peter Schiff tweeted this week that the price of bitcoin might rise ahead of the ETF approval, only to fall afterward. Buying rumors and then selling them as news is a common practice.

How many times can #Bitcoin rally on the same ETF rumor? Once a U.S. Bitcoin EFT is approved, or $GBTC is able to convert into an ETF, there will be no more “good” news for Bitcoin to rally on. After years of buying the rumor, everyone will finally be able to sell the news.

— Peter Schiff (@PeterSchiff) October 16, 2023