What comes next after Bitcoin reaches the $35,000 milestone for the first time since May 2022?
Bitcoin Hits $35,000: US SEC Approval in the Cards
Amidst a prolonged crypto winter after a series of failures in late 2021, Bitcoin has surged to the $35,000-mark, reaching its highest levels since May 2022. This spike in the largest digital token comes amid expectations of approval by the US Securities and Exchange Commission (US SEC) for direct investment in the cryptocurrency. The past week has brought some much-needed good news for enthusiasts of the new-age asset class.
Approval of Exchange-Traded Funds (ETFs) in coming months is on the horizon, and traders are confident that this will drive broader flows into the cryptocurrency, allowing a wider set of investors to buy exposure without directly trading it.
However, the road to the $35,000 milestone for Bitcoin has not been entirely smooth. The removal and subsequent reappearance of BlackRock’s Bitcoin ETF ticker, IBTC, from the Depository Trust & Clearing Corporation’s (DTCC) website caused the currency to retrace to $34,000. Nonetheless, the ticker’s listing on the DTCC hinted at a potential SEC approval, driving Bitcoin to achieve a new yearly high with strong market demand.
The surge in Bitcoin has had a ripple effect on other crypto tokens, with Ethereum surging about 15 per cent, Solana jumping 30 per cent in a week, and other altcoins like Chainlink, Mina, and Injective experiencing boosts of 50-90 per cent. Overall, the optimism in the digital token space has pushed the crypto market cap close to $1.3 trillion.
Vikram Subburaj, CEO at Giottus Crypto Platform, expressed excitement at the expectations of mass adoption of Bitcoin as a safe haven investment akin to Gold, emphasizing that the rally has been fueled by a positive development regarding its spot ETF approval in the US. He noted BlackRock’s iShares Bitcoin trust being listed into the depository trust clearing corporation with the official ticker marked down as $IBTC, bringing the ETF one step closer to reality.
Bitcoin’s dominance of the crypto market cap has increased to 54 per cent, a level not seen since April 2021, indicating a strong rotation of capital to the number one crypto asset. As Bitcoin consolidates after its recent upward momentum, it is trading above its 50-day and 200-day exponential moving averages. Despite a pullback to near $34,000, experts like Edul Patel from Mudrex believe that as long as the price maintains itself above $31,500, the bullish sentiment is expected to outmuscle the bearish forces, potentially reaching the range of $36,000 to $38,000.
Overall, the expectations of approval by US SEC for direct investment in Bitcoin and the potential for a spot ETF approval have fueled a bullish sentiment in the crypto market, leading to a surge in prices and investor optimism. However, readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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