6% surge in Bitcoin

Record-breaking Bitcoin Surge: 6% Gain Propels Price to $35,198

Bitcoin, the pioneer of cryptocurrencies, witnessed an impressive surge of 6% on Tuesday, reaching a peak of $35,198. This marks its highest value in nearly a year and a half, following a remarkable 10% surge just the previous day. The enthusiastic rally rippled through the broader cryptocurrency market, propelling related stocks to higher levels.


Investors are closely monitoring the U.S. Securities and Exchange Commission (SEC) for any signs of approval for an eagerly awaited exchange-traded fund (ETF) tailored to hold bitcoin on behalf of fund investors. The introduction of such a fund holds the potential to significantly broaden the accessibility of the bitcoin sector, appealing to a previously cautious investor base and infusing fresh capital into the market.


Steen Jakobsen, Chief Investment Officer at Saxo, underscored the critical role of user base in determining the value of any asset, stating, “The value of… any asset, basically, is the amount of people using it. So the ETF would make a large audience and increase liquidity.”


In tandem with the mounting speculation, bitcoin has demonstrated substantial gains throughout the year, currently standing at a 3.2% increase, resting at $34,129. Simultaneously, the second-largest cryptocurrency, ether, is scaling heights not seen since August.


Stocks linked to bitcoin, including prominent U.S. exchange Coinbase Global and bitcoin proprietor MicroStrategy, experienced a surge in post-trading hours. Notably, investment behemoth BlackRock stands among a cadre of major U.S. financial firms with ETF applications pending approval.


Speculation intensified with the appearance of BlackRock’s iShares ETF on the clearing house DTCC’s website. The timing and rationale behind the addition of the iShares ETF to the DTCC list remain unclear. Further fueling hopes was a recent report, including coverage by Reuters, suggesting that the SEC would not contest a court ruling that deemed the commission’s rejection of an ETF application from crypto entity Grayscale Investments as misguided. Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, pointed to this development as heightening the likelihood of ETF approval.


BlackRock promptly addressed the speculation, refuting a misleading report claiming their ETF had already secured approval. Analysis on the crypto derivatives platform Coinglass revealed substantial evidence of significant short-covering in the bitcoin market over the last 24 hours.


In conclusion, the recent Bitcoin surge of 6% has not only propelled its value to $35,198, marking an 18-month high, but has also ignited optimism and anticipation in the cryptocurrency market, setting the stage for potential future developments and investments.

Source: Reuters

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