Bitcoin reaches a new milestone by surpassing $35,000 for the first time since May 2022.
Bitcoin Price Surges to 18-Month High on Speculation of US ETF Approval
In a sudden and dramatic surge, the price of cryptocurrency Bitcoin leapt as much as 16% to reach an 18-month high of $35,080.66 in early Asia hours on Tuesday. This surge was fueled by speculation that the United States could soon approve a Bitcoin exchange-traded fund (ETF).
Bitcoin’s Rise and Rival Ethereum’s Breakthrough
At $35,080.66, Bitcoin was up 16%, according to data on Binance. Meanwhile, its smaller rival Ethereum also saw a significant increase, rising nearly 9% to reach $1,830, breaking above its 200-day moving average.
Impact on Crypto-Related Shares
This surge in cryptocurrency prices also had a notable impact on crypto-related shares. Exchange Coinbase Global, miner Marathon Digital, and Bitcoin holder MicroStrategy all experienced sharp increases and continued to make further gains in after-hours US trade.
Growing Anticipation of a Bitcoin ETF Approval
The anticipation of a potential Bitcoin ETF approval has been steadily increasing. Reports, including from Reuters, indicated that the US Securities and Exchange Commission (SEC) would not appeal a ruling that deemed it wrong to reject an application from Grayscale Investments.
The Power of a Bitcoin ETF
The potential approval of a Bitcoin ETF is viewed as a catalyst that could drive broader flows into the cryptocurrency market. It would allow a wider set of investors to buy exposure without directly trading Bitcoin, thus potentially leading to increased investment and market activity.
Evidence of ETF Preparations
The Depository Trust and Clearing Corporation (DTCC) website has provided evidence that investment firm Blackrock is preparing for the launch of a Bitcoin ETF. Blackrock’s iShares ETF is listed on the DTCC website, fueling speculation that the approval is imminent.
Future ETF Approvals
An approval of the ETF for Bitcoin could pave the way for the approval of many other Bitcoin ETFs. VanEck, WisdomTree, Fidelity, Bitwise, and Invesco all have pending Bitcoin ETF applications, awaiting the outcome of this crucial decision.
Bitcoin’s Market Performance and Perception as a Safe Haven Asset
With a significant 107% increase in its price this year alone, Bitcoin has added over $300 billion of market capitalization, bringing its market cap to $670 billion. Furthermore, amidst worsening geopolitical tensions, Bitcoin is increasingly being viewed as a safe haven asset.
As the speculation regarding the ETF approval continues, the cryptocurrency market is eagerly awaiting the SEC’s decision, which is expected to have a significant impact on the future of Bitcoin and cryptocurrency investments.
[Note: The information in this article is based on reports from Reuters.]
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