Bitcoin Value Soars Amid ETF Buzz and Ongoing Institutional Interest
Summary:
Bitcoin's (BTC) value saw a rise today, reaching as high as $35,121, largely due to the excitement around a potential spot BTC exchange-traded fund (ETF). Despite the $35,000 level presenting some resistance, institutional interest and the resultant bullish momentum are driving the market higher. The BlackRock iBTC fund is the first to be listed by a Nasdaq clearing firm, while SEC has yet to approve a spot Bitcoin ETF. An approval could reportedly generate up to $600 billion in new demand and see a $1 trillion increase in Bitcoin’s market capitalization.
Today, Bitcoin's (BTC) value witnessed an upswing, reaching an intra-day pinnacle of $35,121. This positive evolution of Bitcoin’s value seems rooted in the excitement around a potential spot BTC exchange-traded fund (ETF), resulting in spikes in spot and CME BTC volumes. This bullish momentum is lifting prices throughout the cryptocurrency market. While the price of Bitcoin is facing some resistance at the $35,000 mark, the factors driving this week's positive trend may suggest a stable rally. Let's dig deeper into the reasons behind Bitcoin's price boost today.
Regardless of several macroeconomic obstacles, institutional interest in Bitcoin is fostering a positive market atmosphere. The Bitcoin price has surpassed the important mark of $35,000 two times within the previous 48 hours. This inclusive bullish momentum elevated the Crypto Fear and Greed index to its peak since November 2021, when Bitcoin reached an all-time high of $69,789.
In contrast to the flurry of spot Bitcoin ETF amendments in mid-October, the BlackRock iBTC fund is the pioneering ETF to be listed by a Nasdaq clearing firm. Up to this moment, the SEC has consistently declined to authorize a spot Bitcoin ETF, rejecting proposals from giants like BlackRock, Fidelity, ARK Invest, and 21Shares, who has applied three times. Grayscale celebrated a significant triumph on October 14 when the SEC declared that it wouldn't challenge the decision made by U.S. Court of Appeals Circuit Judge Neomi Rao. This decision prompted Grayscale to submit a fresh spot Bitcoin ETF proposal on October 19.
Analysts keep guessing the potential impact of an approval of a spot Bitcoin ETF on BTC price. An approval, as per reports, may spur $600 billion in new demand. CryptoQuant analysts project an ETF approval could contribute to a $1 trillion enlargement in Bitcoin’s market capitalization. A report by Galaxy Digital released on October 24 predicts a minimum of $14.4 billion of inflows in the initial year of Bitcoin ETF approval, expanding to $38.6 billion by the third year. The fund also anticipates a 74% price surge in the first 12 months following a spot BTC ETF initiation.
According to Charles Edwards, founder of Capriole Investments, post the approval of a Gold ETF, gold broke free from a bear market to generate a 350% return. On another front, as Bitcoin’s price sees an uptick, exchanges continue witnessing a departure of BTC. This phenomenon is considered bullish by the market, as traders usually withdraw their BTC for long-term self-custody. Despite the Bitcoin outflows, spot volume has seen a massive surge. On October 25, the trading volume skyrocketed above $35 billion, marking the first time since March 20. A key highlight of the price breakout has been the consistent spot volumes.
Nonetheless, this article doesn't offer investment advice or recommendations. Each investment or trading move carries a risk and readers ought to undertake their own due diligence before making a decision. Claim this news article as an NFT to document this historic event and to express your support for independent journalism in the cryptocurrency realm.
Published At
10/25/2023 8:53:17 PM
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