The cryptocurrency has been boosted in recent days by confidence that a bitcoin ETF in the spot market. You also benefit from a context of nervousness before what the Federal Reserve (Fed) next week, which is intensifying its role as a safe haven asset.
The latest increases raise the 109% cryptocurrency recovery so far this year after the drop recorded in 2022.
The possible approval in the coming weeks of the first Bitcoin ETF in the US is stoking speculative ardor for the token. Asset managers BlackRock and Fidelity Investments are some of those in the race to offer this type of product. Digital asset advocates argue that ETFs would broaden cryptocurrency adoption.
I look forward to the possible approval of bitcoin spot ETFs by the US Securities and Exchange Commission (SEC). revolutionize digital currency and bitcoin market. This could bridge the gap between the traditional financial system and the digital world, allowing real-time price analysis. In my opinion, this bullish trend could continue up to levels above US$40,000 in 2024“explained Rania Gule, analyst at XS.com.
Cryptocurrencies: how the rest of the market operates
Next to bitcoin, Ethereum, the second largest cryptocurrency in the world, reached highs since August. It is trading above US$1,800 after skyrocketing 10% in the last 24 hours.
“The real catalyst that created the ‘divine candle’ today and took bitcoin above $34,000 was the liquidation of short positions worth $167 millionmainly on foreign exchanges,” said Ryan Rasmussen, an analyst at Bitwise Asset Management, according to ‘CNBC’.
“I don’t think anyone expected the level of price action we are seeingand those investors who were betting bearish on bitcoin in the range of $33,000 or more, surely are feeling the pain of that surprise today“, Add.
The possibility of a bitcoin ETF being approved grew after the court ruled in favor of the cryptocurrency-focused asset manager Grayscale in front of the SEC in its attempt to convert its large bitcoin fund Grayscale Bitcoin Trust (GBTC) into an ETF.
Last week, the SEC declined to appeal that decision on a key deadline, raising hopes that a bitcoin-related ETF could be approved in the coming months.
The rest of the market operates with generalized gains, with Cardano (8.4%) and Solana (7.5%) standing out.
Source: Ambito
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