Bitcoin Surges to 18-Month High on Speculation of ETF Approval
Bitcoin Price Soars to $35,080.66 in Early Asia Hours
In a surprising turn of events, cryptocurrency Bitcoin jumped as much as 16% to reach an 18-month high of $35,080.66 in the early hours of Tuesday, sparking excitement and speculation within the digital currency market. The surge in Bitcoin’s price was driven by growing optimism around the potential approval of a Bitcoin exchange-traded fund (ETF) in the US.
Bitcoin’s Dramatic Upswing
The data on Binance showed that Bitcoin was last up 16% at $35,080.66, while its smaller rival Ethereum also experienced a significant increase, rising nearly 9% to $1,830. This surge in Ethereum’s price allowed the digital currency to break above its 200-day moving average, marking a positive turn for the cryptocurrency market as a whole.
Crypto-Related Shares Soar
The soaring prices of Bitcoin and Ethereum were also reflected in the performance of crypto-related shares. Exchange Coinbase Global, miner Marathon Digital, and Bitcoin holder MicroStrategy all saw a sharp uptick in their stock prices, with further gains in after-hours US trade.
Paving the Way for a Bitcoin ETF
The anticipation of a Bitcoin exchange-traded fund (ETF) has grown in recent weeks, following reports that the US Securities and Exchange Commission (SEC) may not appeal a ruling that deemed it wrong to reject an application from Grayscale Investments. The approval of a spot Bitcoin ETF is expected to drive broader flows into the cryptocurrency market, providing a wider set of investors with the opportunity to buy exposure without directly trading Bitcoin.
Favorable Signs for Bitcoin ETF Approval
Evidence from the Depository Trust and Clearing Corporation (DTCC) website has suggested that Blackrock is preparing for the launch of a Bitcoin ETF. Blackrock’s iShares ETF is listed on the website of the clearing house DTCC, fueling speculation regarding the imminent approval of the ETF. An SEC approval of the ETF could also pave the way for the approval of multiple other Bitcoin ETF applications, including those from VanEck, WisdomTree, Fidelity, Bitwise, and Invesco.
Bitcoin’s Impressive Year
In addition to the positive news surrounding the potential ETF approval, the price of Bitcoin has officially surged by 107% this year alone, adding over $300 billion in market capitalization. Bitcoin’s market cap now stands at $670 billion, a significant increase from its value last year. Furthermore, Bitcoin is also being viewed as a safe haven asset as geopolitical tensions continue to escalate.
With inputs from Reuters, the cryptocurrency market is abuzz with excitement and enthusiasm as the potential approval of a Bitcoin ETF opens up new opportunities for investors and marks a significant milestone for the digital currency market.
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