The price of bitcoin has once again surged, surpassing the $34,500 mark and solidifying its position as the leading cryptocurrency in the market. With bitcoin currently valued at around $34,800, it has experienced an impressive increase of 23.4% in just one week and a staggering 109% since the beginning of this year. These figures, provided by CoinMarketCap, demonstrate the remarkable growth that bitcoin has achieved in recent months.
Key Takeaway
The price of bitcoin has surged above $34,500 per token, continuing its dominance as the leading cryptocurrency. Anticipation of a bitcoin spot ETF approval is driving the recent price surge, with the potential for increased institutional demand for bitcoin. However, challenges remain in the path towards ETF approval.
The Bullish Trend
Bitcoin’s price has been steadily rising for the past eight weeks, indicating an accumulation phase for the cryptocurrency. Last week, it ignited several significant bullish signals, resulting in a breakthrough of the 50-day moving average. Such victories in the market attract a wide range of investors and traders, who become increasingly focused on these positive signals.
However, not everyone is celebrating these gains. Market participants who have bet against bitcoin, known as shorting, have faced significant challenges as the recent surge in price delivered a “perfect storm” for them, as explained by John Glover, chief investment officer at Ledn.
Driving Forces Behind the Surge
The main driving force behind the recent surge in bitcoin’s price has been the prospect of the approval of a bitcoin spot exchange-traded fund (ETF). According to Michael Silberberg, head of investor relations at Alt Tab Capital, there is a high likelihood of such an approval. This anticipated development has sparked significant market speculation and excitement.
If a bitcoin spot ETF is approved, it could lead to a surge in demand for bitcoin itself. Traditional financial players, currently restricted from trading spot market cryptocurrencies due to regulations, often resort to regulated products like bitcoin futures. The introduction of a bitcoin spot ETF could enable institutional interest to flow in, resulting in increased demand and potentially driving up the price of bitcoin.
Challenges on the Path to ETF Approval
However, the path toward the approval of a bitcoin spot ETF has not been without obstacles. Last week, false reports circulated claiming that BlackRock’s ETF application had been approved, leading to a slight increase in bitcoin’s value. Such incidents highlight the market’s keen interest and sensitivity to news surrounding ETF approvals.
