Bitcoin Briefly Cracks $35k Amid spot ETF Frenzy
Bitcoin’s value has hit a yearly high of more than $35,000 amid market optimism about a spot ETF approval.
Uno…
Bitcoin cracked the $35,000 mark today, marking the first time this year that the flagship asset has traded at that level. The flagship asset has since retreated to around $34,000 as of press time.
After falling to as low as $25,000 in September, BTC has been gaining momentum in the last 30 days. Not even the fake news of spot ETF approval or the economic conditions has dampened its rise. In the last 30 days, it has gained 30% and increased by 21.8% in the last seven days.
What is Driving Bitcoin Price?
Several factors are driving the most recent rally in Bitcoin price. This includes the Securities and Exchange Commission pulling back on its enforcement against crypto stakeholders.
The regulator dropped all civil charges against Ripple executives Brad Garlinghouse and Chris Larsen while also deciding not to appeal the Court of Appeal ruling in favor of Grayscale.
But the primary reason for the most recent surge is the likelihood of the regulator approving a spot Bitcoin ETF. The recent listing of the BlackRock iShares Bitcoin Trust ETF on the Depository Trust & Clearing Corporation (DTTC) represents a major step towards the final approval of a spot Bitcoin ETF.
According to ETF expert Eric Balchunas, the iShares listing with the ticker $IBTC hint at the possible SEC regulatory clearance and the ETF has already been given a CUSIP number. This unique number identifies stocks and registered bonds in the U.S. and Canada and is assigned by the American Association of Bankers.
Macroeconomic conditions also favored Bitcoin and other assets perceived as a hedge against inflation, including Gold, which has gained about 4% in the last 30 days. Nevertheless, the largely bullish sentiment among investors has been fueling the flagship asset performance.
This particular surge to almost $35,000 is also unique in how it has influenced altcoin prices. Unlike the past two instances when BTC reached this level, Santiment noted that altcoins have also picked up, with many cryptocurrencies such as MATIC, LINK, and APT having their best-performing decouplings in 2023.
No More Room for Bearishness
With its current price, crypto investors believe this is only the start of a bull run and expect the asset to climb higher. Jelle that now that BTC has broken key resistance levels, its prices are only going to go higher. He noted that there will likely be pullbacks and dips, but he does not recommend selling at this point.
“Bitcoin breaks the single biggest level on the chart and your first response is to sell, looking for lower. We're still >50% below the previous ATH. Hold tight, be patient.”
Full-time crypto trader Daan Crypto predicted earlier that BTC could target $38,000 if it can break the $32,000 range. He now believes that if BTC continues to increase in value, the ETF approval news might not have a huge impact on the asset when it’s over $40,000 compared to its current price.
#Bitcoin Well on it's way towards the top of the 2023 range.
$31K-32K won't be easy to break through but upon doing so I would be targetting $38K next.
Remains range-bound until then. pic.twitter.com/aBff4oVhBp — Daan Crypto Trades (@DaanCrypto) October 22, 2023
Nevertheless, the next two critical areas of resistance for the asset might be between $38,440 and $47,360 according to the UTXO Realized Price Distribution (URPD) model.
