The cryptocurrency market has awakened from lethargy, bringing unexpected news for investors and digital gold enthusiasts. Bitcoin, the leader of virtual currencies, broke the $37,000 barrier, indicating growing optimism among investors. Are changes on the horizon that will open new perspectives for the oldest of cryptocurrencies?
A new wave of enthusiasm has entered the world of digital finance. After eighteen months of uncertainty, Bitcoin surprised the markets by surpassing the $37,000 level. This psychological threshold was reached in the face of growing hope for the acceptance of Exchange-Traded Fund (ETF) funds, tracking the price of Bitcoin, by the U.S. Securities and Exchange Commission (SEC).
It was observed that along with the rising prices of Bitcoin, the value of futures contracts on this cryptocurrency also increased. Data from the Chicago CME exchange indicated a temporary increase to the level of $37,450.
The basis of this optimism is the potential approval of 12 applications for ETF products that would directly reflect the price of Bitcoin in the spot market. Bloomberg analysts, James Seyffart and Eric Balchunas, point out that the SEC has until November 17 to make a decision on these applications.
Although the market eagerly awaits these decisions, experts predict that the actual introduction of these products may occur with a one-month delay. At the same time, Grayscale, the largest manager of cryptocurrency assets in the U.S., has taken steps to transform its Bitcoin Trust into a Bitcoin-based ETF.
It’s not just Bitcoin that is experiencing a rise in value. Other leading digital assets, such as Ether (ETH), Binance Coin (BNB), Cardano (ADA), or Polygon (MATIC), are also gaining in value.
This movement in the cryptocurrency market has led to numerous position liquidations, reaching nearly $150 million in the last 24 hours, with 80% being short positions.
Market analysts, as well as AI predictive models, agree that the current upward trend of Bitcoin is not yet exhausted, and its price may reach new records in the coming months. Key factors that may contribute to this are the potential approval of a Bitcoin-based ETF, the increasing adoption of cryptocurrencies, and the approaching Bitcoin halving, which occurs every four years.
Bitcoin, a currency that attracts the attention of millions, is making itself known again, reminding us that in the world of cryptocurrencies, the only constant is constant volatility.
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