The Price of Bitcoin Surges to a 16-Month High on ETF Optimism
The price of Bitcoin (BTC) has surpassed $35,000, reaching a 16-month high. This surge is attributed to growing optimism surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. Options data suggests that there is still room for BTC to grow.
BTC has experienced a weekly increase of over 20.5% and is currently trading at $34,300 after a slight correction. Despite this correction, the cryptocurrency has gained over 100% in value this year.
BlackRock’s Proposed iShares Spot Bitcoin ETF Listed on DTCC
The surge began when Eric Balchunas, an ETF Analyst at Bloomberg, noted that BlackRock’s proposed iShares spot Bitcoin ETF was listed on the Depository Trust & Clearing Corporation (DTCC). The DTCC provides post-trading, settlement, custody, and information services for Nasdaq. Balchunas stated that this listing is part of the process of launching an ETF and indicates that approval may be imminent.
Altcoins Follow BTC’s Surge
Other cryptocurrencies have also experienced significant surges alongside BTC. Ethereum saw a 24-hour performance increase of over 9%, while Solana rose by 7%. Cardano outperformed both with a 7.7% rise.
Bitcoin’s Uptrend Supported by Falling US Treasury Yield
The sharp rise in prices coincided with a sharp fall in the 10-year US Treasury yield, which reached 5% for the first time since 2007. CoinDesk’s Bitcoin Trend Indicator, which tracks the movement and strength of Bitcoin’s price, now shows a “significant uptrend” as BTC consolidates above $30,000.
Option Dealers May Further Boost BTC Rally
In a market report, Alex Thorn, the research head at digital asset investment firm Galaxy, explained that option dealers had to hedge their positions by buying Bitcoin on the spot market. This could potentially fuel further growth in the cryptocurrency’s value. Thorn noted that for every 1% move up to the $32,500 peak, options dealers would need to purchase nearly $20 million worth of BTC to stay delta neutral.
Hot Take: Bitcoin’s Surge Indicates Strong ETF Approval Possibility
The recent surge in the price of Bitcoin suggests that there is growing optimism surrounding the approval of a spot Bitcoin ETF in the US. The listing of BlackRock’s proposed iShares spot Bitcoin ETF on the DTCC indicates that approval may be imminent. This positive development has not only propelled BTC to a 16-month high but has also led to surges in other cryptocurrencies like Ethereum and Cardano. The falling US Treasury yield and CoinDesk’s Bitcoin Trend Indicator further support this uptrend. Option dealers hedging their positions may also contribute to the rally. Overall, these factors indicate a strong possibility of an ETF approval and continued growth for Bitcoin.
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