As Bitcoin breaks past $34,000, October 2023 saw a sudden turn of events. The price of Bitcoin reached as high as $35,300. Since May 2022, it has been the first time that bitcoin has reached this level. After breaking the level of $34,000, BTC crossed the next hurdle of $ 35,000 in no time.Â
Renewed Hope for Spot ETF Approval
The sudden surge in Bitcoin coincides with a fresh wave of optimism surrounding the approval of spot ETF will enable traditional investors to access the world of cryptocurrency with more confidence. This sudden spike in Bitcoin will play a positive role in ETF.
Furthermore, global investment giant BlackRock wishes to offer a spot Bitcoin ETF to its clients. The company has already been granted the CUSIP license, which proves the intention of the company in this regard. Many researchers have given their own opinions on the surge of Bitcoins. Analyst Scott Johnson has presumed that the company will soon begin the process of seeding its spot ETF with cash, and this process will start as early as possible. Analyst Eric Balchunas of Bloomberg has declared that this is another step in the process of launching. BlackRock’s eagerly anticipated ETF has appeared on the website of the Depository Trust & Clearing Corp (DTCC). The DTCC is a crucial market utility in the United States responsible for processing all securities transactions, and this development is seen as a strong signal of BlackRock’s commitment to entering the cryptocurrency ETF arena.
The appearance of the BlackRock ETF on the DTCC’s website is a significant step in the preparation for launching the fund. While it doesn’t confirm the ETF’s approval, it signifies an optimistic outlook for the market.
Bitcoins surge and increased trading volume
The surge in Bitcoin created a roar in the world of investment and currency exchanges. The world saw remarkable growth in trading volumes within the spot market. As Bitcoin breaks past $34,000, The spot trading volume has skyrocketed to $35 billion within 24 hours. This resulted in a massive 241% increase during the same time.Â
The recent surge in Bitcoin’s price, closely correlated with the growing optimism surrounding spot ETFs and BlackRock’s involvement, underscores the industry’s maturity. The spike in price did not affect Bitcoin alone. It was observed that Ether had a 7% increase, while Dogecoin and Cardano saw an 8% and 5% gain, respectively.Â
This development coincided with a sudden and rapid surge in Bitcoin’s price. However, the volatile nature of cryptocurrency markets was evident during this surge, as more than $167 million in derivative positions were liquidated within an hour. This contributed to the daily total of $344 million in liquidations, reflecting the inherent risk and rapid changes in cryptocurrency trading.
Moreover, open interest, a metric used to record the notional value of all derivatives positions, failed to keep pace with Bitcoin’s meteoric rise. It dropped from a peak of $10.5 billion to $9.4 billion, primarily due to liquidations, short positions being stopped out, and traders in long positions taking profits.
Bitcoin’s Antigravity Phase
With such skyrocketing value, Bitcoin is truly in its anti-gravity phase. The surge in Bitcoin prices has made a significant impact on the cryptocurrency exchanges. the BTC Fear and Greed Index is pointed to 66 for the first time since April 2023.
While this search has created a positive impact, it has its own negatives as well. The price of gold soared as high as 300%, and this happened after the first ETF approval. Research points out that the launch of ETF might become a danger, and it might push down the price of Bitcoin.
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