The crypto world is always in constant growth, and among the recent surges witnessed is in Bitcoin. Its price has increased following the increasing demand for spot exchange-traded funds (ETF) and this has caused a bull rally that has seen its price closely reach the $35,000 mark.
The surge comes as good news to crypto enthusiasts and investors, as it places more confidence in digital assets, and attracts more institutional investors, which had seen a $10 million decline since the fall of Silicon Valley Bank.
The currency’s bull rally is a correction of its former bearish trend that has seen its price decrease by over 80%. However, the recent spike shows promise for its market value in the future, as experts predict it will reach high levels of $50,000.
Bitcoin’s ascent and the start of a bull market
At the beginning of last week, Bitcoin experienced a price spike that recorded a 10% gain following a report that was later discredited by the source. The news was on exchange-traded funds (ETF) approval by the Securities and Exchange Commission (SEC), and this influenced the entire Bitcoin market.
On the other hand, retail traders and institutional investors have taken advantage of the situation and sought long positions for the digital currency.
Bitcoin started to get attention in 2017 when its mainstream adoption began and resulted in a surge of nearly $20,000, and this was followed by a swift decline. However, its price recovered and recorded its all-time high of $69,700 in 2021, putting it in the spotlight once again.
Late 2022 was a rough time for the crypto market as one of the top crypto exchanges, FTX, collapsed, leaving the market in disarray. This affected Bitcoin’s price a great deal and caused a decline in its price, and it has long since experienced a steady rise. The ETF invention has been buzzing, and it has met a warm welcome by the crypto community.
The crypto market surge amid ETF news
Bitcoin’s rally above the $35,000 level is the first incident since May 2022, when it had a similar market value. On October 23, Bitcoin experienced another price spike from $31,000 to $34,000, recording a similar 10% gain as last week. Currently, according to data from CoinMarketCap is trading at $33,956 at the time of writing.
The price rise can be attributed to the increased trading volumes and the growing interest in ETF approval. Evidence of this is the proposed BlackRock spot Bitcoin ETF, whose false approval information caused its initial spike.
Comments on the rising price have been buzzing in social media performances, including X, where crypto enthusiast Scott Johnson had something to say on the BlackRock proposal. He commented, stating the organization had already secured a CUSIP license and will soon start seeding its spot ETF with cash as early as next month.
According to an ETF expert on Bloomberg, Eric Balchunas, seeding an ETF wouldn’t be expensive as it just needs enough funding to get the project going.
Additionally, the spot ETF volume has grown more than $35 billion in just 24 hours, recording a 241% gain. The rise in BTC price also slipped over to other cryptocurrencies, including Ether, Solana, and Dogecoin.
ETFs, among other external macroeconomic events, are the reasons behind the sudden Bitcoin price increase. These ETFs are investment vehicles that allow investors to gain real-time exposure to Bitcoin without directly owning the digital asset.
According to Paul Brody, Ernst & Young global blockchain leader, ETF approval could inject an influx of institutional investors. He explained to CNBC the influence of the approval in the crypto market.
As the crypto world closely observes the arrival of ETFs, it’s only a matter of time to reach mainstream approval. It’s evident that their launch is more probable and could be possible as soon as 2024.
