Bitcoin, the OG Crypto, has been on a bullish run in the past few days, breaking above the $30,000 level for the first time since May 2022. The price of bitcoin reached a high of $35,283 on 24 Oct 2023, before retracing slightly to trade around $33,800 at the time of writing.
What are the factors behind this rally and what can we expect from bitcoin in the near future? Here is a brief analysis of the current situation and the outlook for bitcoin.
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Why is BTC Rallying?
One of the main drivers of the recent surge in bitcoin price is the growing speculation and anticipation of a bitcoin exchange-traded fund (ETF) in the US market. A bitcoin ETF would allow investors to buy and sell shares of a fund that tracks the price of bitcoin, without having to deal with the technical and regulatory challenges of holding and transferring bitcoin directly. This would potentially increase the demand and liquidity for bitcoin, as well as its legitimacy and adoption among mainstream investors.
Several companies have applied for approval to launch a bitcoin ETF in the US, but none have been granted so far by the Securities and Exchange Commission (SEC), which has expressed concerns over market manipulation, fraud, and investor protection issues. However, some recent developments have raised hopes that a bitcoin ETF may be closer than ever.
One of these developments is the successful launch of a bitcoin futures ETF by ProShares on 19 Oct 2023, which became the first crypto-related ETF to trade on a major US exchange. The ProShares Bitcoin Strategy ETF (BITO) tracks the price of bitcoin futures contracts, rather than spot bitcoin, and has attracted over $1 billion in assets under management in its first week of trading. While a futures ETF is not the same as a spot ETF, it is seen as a positive sign that the SEC is more open to crypto-related products.
Another development is the listing of a spot bitcoin ETF by BlackRock on a database controlled by DTCC, a Nasdaq-operated clearing house for stocks and ETFs. BlackRock applied in June to register a bitcoin spot ETF, which is pending approval by the SEC. The listing on the DTCC database does not mean that the ETF has been launched or approved, but it may indicate that BlackRock is preparing for a possible launch soon. BlackRock is the world’s largest provider of ETFs, managing trillions of dollars of assets, and its entry into the bitcoin space would be a major boost for the crypto industry.
Apart from the ETF hype, another factor that may be supporting the bitcoin price is the increasing adoption and innovation in the crypto space. Several countries, such as El Salvador, Ukraine, Panama, and Brazil, have either adopted or proposed legal frameworks to recognize and regulate cryptocurrencies. Several companies, such as Twitter, PayPal, Venmo, and Square, have either integrated or announced plans to integrate crypto features into their platforms. Several projects, such as Ethereum 2.0, Cardano, Solana, and Polygon, have either launched or upgraded their networks to improve scalability, security, and usability of their platforms.
BTC Next Target and Price Analysis
Bitcoin is currently trading at $33,800 with a 24h trading volume also jumping 140% to $57bn and market cap of $660bn.
???? Watch Out for the Bullish Flag! ???? Target Set at $52,000.
Future Outlook
The outlook for bitcoin remains positive in the long term, as more investors and users embrace its potential as a store of value, a medium of exchange, and a platform for innovation. However, there are also some risks and challenges that may affect its price performance in the short term.
BTC looks fully bullish and set for a big upmove now! And now with the bitcoin halving event coming up, btc will be making new highs!
News Roundup
Here are some of the latest news headlines related to bitcoin:
- US Court Directs SEC to Reevaluate Grayscale’s Spot Bitcoin ETF: In response to a ruling that mandated the SEC to investigate Grayscale’s application for a spot Bitcoin ETF, the US Court of Appeals issued a mandate.
- Bitcoin soars to $35,000, at one-and-a-half-year high on ETF bets: The recent price rally of bitcoin, driven by speculation of an imminent spot bitcoin ETF by BlackRock.
- Bitcoin soars to near 18-month high as ETF speculation mounts: The recent price surge of bitcoin, fueled by the launch of a futures bitcoin ETF by ProShares and the listing of a spot bitcoin ETF by BlackRock on the DTCC database.
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