Bitcoin Hits $35,000 Mark After 18 Months
The crypto world was abuzz on Tuesday as Bitcoin, the largest digital token, reached the $35,000-mark after about a year-and-a-half. This surge of about 20 per cent in a week, and its highest levels since May 2022, was driven by expectations of approval by the US Securities and Exchange Commission (US SEC) for direct investment in the cryptocurrency, according to industry experts.
An Approval in the Offing
Traders were confident that the Securities and Exchange Commission would approve an exchange-traded fund (ETFs) in coming months. The prospect of a spot Bitcoin ETF is seen driving broader flows into the cryptocurrency, as it would allow a wider set of investors to buy exposure without directly trading it.
However, the positive sentiment was slightly dampened as Bitcoin retraced to $34,000 following the removal of the BlackRock Bitcoin ETF from the DTCC’s website and subsequent reappearance, causing speculation in the market.
BlackRock’s Bitcoin ETF and Rising Inflation
In the past 24 hours, Bitcoin surpassed the $35,000 mark, primarily due to the ticker of BlackRock’s Bitcoin ETF (IBTC) being listed on the DTCC, which hinted at a potential SEC approval. This development drove Bitcoin to achieve a new yearly high with strong market demand, said Edul Patel, Co-founder and CEO at Mudrex.
“The bolestered mood in the crypto market pushed the other crypto tokens higher as its largest peer Ethereum surged about 15 per cent to top $1,800-mark, while Solana jumped 30 per cent in a week. Other altcoins including Chainlink, Mina, Injective were up 50-90 per cent in a week. The overall optimism in the digital token space pushed the crypto mcap close to $1.3 trillion,” said Vikram Subburaj, CEO at Giottus Crypto Platform.
Crypto Market in a Bullish Midterm Zone
Bitcoin has entered a bullish midterm zone after a breakout of the level of $31,500, said Patel from Mudrex, and is currently trading above its 50-day and 200-day exponential moving averages. The Bitcoin dominance of crypto market cap has increased to 54 per cent – a level not seen since April 2021 – indicating a strong rotation of capital to the number one crypto asset. However, despite the bullish sentiment, readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Overall, the crypto market has seen a surge in demand sparked by the potential SEC approval and positive developments with regards to its spot ETF approval in the US. With Bitcoin trading above its moving averages and strong capital rotation, it seems the cryptocurrency could be heading towards further upward movement in the near future.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
