Bitcoin’s price experiences another surge on the wave of investors’ optimistic mood in the context of the potential approval of a cryptocurrency ETF. What is behind this enthusiasm and what are the further forecasts for the most famous digital currency in the world?
Bitcoin, the largest cryptocurrency in the world by market capitalization, is steadily aiming for the $30,000 level. Over the last 24 hours, its value has increased to $29,800, resulting in a weekly increase of more than 11%. Although Bitcoin reached its peak in 2023 in July, at $31,809, since July 24th, it has struggled to return to the $30,000 level. In August, its price dropped to $26,000.
The key to the latest wave of growth is the growing belief in the potential approval of the so-called Bitcoin ETF. Investors and traders are increasingly optimistic about the decision of the U.S. Securities and Exchange Commission (SEC) regarding the approval of a Bitcoin-based ETF.
It’s worth recalling that Grayscale wanted to convert its Grayscale Bitcoin Trust (GBTC), the largest institutional Bitcoin asset, into an ETF. In August, the court ruled in favor of Grayscale, overturning the SEC’s decision to reject the application. Moreover, the SEC decided not to appeal this judgment, which fuels speculation about possible approval. Following this decision, several ETF providers altered their filings over the past week, putting pressure on the SEC to approve a Bitcoin-based ETF.
Recently, four members of the House Financial Services Committee sent a letter to SEC Chairman Gary Gensler, urging him to stop blocking the regulatory approval of Bitcoin-based ETFs. Many traders believe that a decision in favor of Grayscale could further boost optimistic sentiments and lead to broader market growth.
Meanwhile, Bitcoin enthusiasts see significant potential in such an ETF. SkyBridge Capital’s founder and managing partner, Anthony Scaramucci, predicts that Bitcoin will become a $15 trillion asset, arguing that this digital currency could potentially be more valuable than gold.
Lucy Hu, a senior trader from Metalpha, noted, “The approval of a Bitcoin ETF and the split in April could kick off a very strong rally in the cryptocurrency market.”
Against the backdrop of these optimistic sentiments, it’s worth paying attention to the performance of other Bitcoin variants. Bitcoin Cash (BCH) and Bitcoin SV (BSV) recorded the largest increases, jumping by as much as 26%.
However, at the time of writing this article, Bitcoin was trading at $29,976.
Photo by Kanchanara on Unsplash
