Bitcoin Surges to 17-Month Highs on ETF Excitement
Bitcoin (BTC) reached its highest levels since May 2022, with a 17% gain since the previous week’s close. This surge in price was fueled by the excitement surrounding the potential launch of a Bitcoin spot price exchange-traded fund (ETF) in the United States. Although there has been no official approval yet, the appearance of data for the iShares Spot Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) website suggests that it is only a matter of time.
Bitcoin ETF Inflows Increase
The possibility of a Bitcoin ETF approval has resulted in significant inflows into public Bitcoin ETFs worldwide. In just 24 hours, these ETFs saw inflows equivalent to 10% of the total inflows for this year. The approval of one Bitcoin ETF could pave the way for more approvals in the future, according to financial commentary resource The Kobeissi Letter.
Bullish BTC Price Action Raises Questions
Despite the optimistic sentiment surrounding Bitcoin’s price surge, some traders and analysts remain cautious. Traders such as Ninja have pointed out that all CME Group Bitcoin futures gaps above the spot price have been filled, which could indicate a potential downturn in price. Other traders, including Maartunn and Crypto Chase, have suggested that BTC’s price could experience a sell-off after an initial spike following an ETF approval. Filbfilb also expressed doubt about whether this recent price increase is different from previous cycles.
Hot Take: Is This Just Another Cycle?
While the excitement around a potential Bitcoin ETF launch has driven prices higher, there are concerns about whether this surge is unique or just another cycle. Traders and analysts have expressed caution, pointing out potential gaps in the market and the possibility of a sell-off after an ETF approval. Only time will tell if Bitcoin can sustain its current bullish momentum or if it will experience a downturn similar to previous cycles.
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