In a significant rally on Monday, Bitcoin, the world’s leading cryptocurrency, surged to a three-month high, marking a 3.62% increase, with its value reaching $31,087. This surge was propelled by a growing confidence among investors in the potential approval of a spot Bitcoin exchange-traded fund (ETF).
The positive movement in Bitcoin also reverberated through the market, leading to notable gains for cryptocurrency and blockchain-related companies. Coinbase Global saw a 6.5% increase in its shares, while Marathon Digital Holdings experienced a substantial 11.9% jump in value.
This surge in the cryptocurrency market coincided with a notable increase in the yield on 10-year U.S. Treasuries, which reached as high as 5.021%. This rise comes against the backdrop of broader market uncertainty, particularly concerning the potential for a wider regional conflict arising from the ongoing Israel-Hamas conflict.
A contributing factor to Bitcoin’s surge was a mistaken news report suggesting that asset management giant BlackRock had submitted a high-profile application for a spot Bitcoin ETF. If approved, this fund would have the capability to track the underlying price of the cryptocurrency. Currently, the U.S. Securities and Exchange Commission (SEC) is in the process of reviewing the proposal and is slated to make a decision by early 2021. Nevertheless, investors have already displayed a robust belief in the likelihood of the fund’s approval.
Matteo Greco, a research analyst at Fineqia, a company specializing in crypto and fintech investments, remarked, “Over the past month, the growing investor confidence in the imminent approval of BTC spot ETFs has driven considerable momentum toward BTC.”
Ether, another widely utilized cryptocurrency, also experienced an uptick in value, climbing by 1.57% to reach $160.3.
The surge in Bitcoin to a three-month high signals a pivotal moment for the cryptocurrency market, underlining the increasing confidence and potential it holds in the broader financial landscape.
Source: Reuters
