Bitcoin Hits 7-Month High After U.S. Thanksgiving
On the day after the U.S. Thanksgiving holiday, Bitcoin (BTC) surged to levels not seen since May 2022. The world’s largest cryptocurrency by market value climbed to $38,000, marking a significant uptick in price amid quiet trading in traditional markets.
Bitcoin Surges to $38,000
BTC briefly touched $38,000 early Friday morning before retreating to levels around $37,800. However, the cryptocurrency has held above the $38,000 threshold for several hours and seems to be attempting to push even higher.
Investor Optimism and ETF Approval
The surge in price is attributed to investor optimism about a potential approval from the U.S. Securities and Exchange Commission (SEC) on a spot bitcoin exchange-traded fund (ETF). Laurent Kssis, in an interview with CoinDesk, commented on the potential impact of the ETF approval on the market. He anticipates a new layer of volatility following the potential approval date of January 11.
Impact on Institutional Investors
Kssis further explained that a bitcoin ETF would attract more turnover in volumes from institutional investors, who are currently restricted from trading on non-regulated exchanges due to compliance restrictions. He predicts that if the ETF is approved, Bitcoin could rally to $40,000 over the weekend.
Ether Rises Over 3%
In addition to Bitcoin’s rally, Ether (ETH), the second largest cryptocurrency by market value, also experienced a surge of over 3% on Friday. This indicates a broader bullish sentiment in the cryptocurrency market, with multiple digital assets seeing positive price movements.
Outlook for Bitcoin and the Cryptocurrency Market
Kssis anticipates significant volatility in Bitcoin’s price following the potential ETF approval, noting that while it creates additional risks for investors, it also presents opportunities for arbitrage. He suggested that breaking the $40,000 barrier over the weekend would not be surprising given the current market conditions.
Overall, the surge in Bitcoin’s price and the positive movement in Ether indicate a growing sense of optimism in the cryptocurrency market. The potential approval of a bitcoin ETF and the anticipation of increased institutional involvement have contributed to the recent rally, with investors closely monitoring the market for further developments.
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