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Bitcoin’s value crossed the $66,895 threshold in October for the first time in history.
Chesnot | Getty Images
bitcoin It rose to its highest level in more than a month on Wednesday, as traders got excited about prospects for a Bitcoin spot ETF after a series of recent applications from companies including Black stone.
Bitcoin price jumped nearly 10% to $30,621.80, according to Coin Metris, extending gains made earlier in the day.
Investors are increasingly optimistic about the prospects for BlackRock and other major institutional names in participating in digital assets.
This is despite all the bad news that has been surrounding the cryptocurrency space lately, with the market still being affected by the FTX crash scandal and the ensuing regulatory fallout.
“The list of instant Bitcoin ETF implementation announcements by major institutions has definitely put the bullish back into the crypto markets,” Vijay Aiyar, Head of International Markets at CoinDCX, India’s largest cryptocurrency exchange, told CNBC.
“We also hit significant support at $25,000 for Bitcoin, and we saw that move was driven more by pure spot buying rather than a short liquidation move which is very healthy,” Aiyar said.
“BTC market structure, we broke out of a major downtrend that started in April this year and lasted about 2 months, so most traders will be looking for us to test at least $32k. Breaking this level opens $36k and then $45-48k.”
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Earlier this week, BlackRock placed an order for a bitcoin spot ETF, which will track the underlying market price of bitcoin. Cryptocurrency proponents say this would give investors exposure to bitcoin without them having to own the underlying asset.
Coinbase Listed as the bitcoin custodian for the proposed BlackRock ETF. BlackRock has an existing strategic partnership with Coinbase. A major US cryptocurrency exchange has gone through a period of difficulty recently, under massive regulatory pressure from the US Securities and Exchange Commission.
After BlackRock’s announcement, a host of other asset management firms filed their own bids for a bitcoin ETF, including WisdomTree.
Elsewhere, investors are closely watching macroeconomic indicators for a sense of movement in the cryptocurrency market.
Previously, cryptocurrencies were linked to movements in financial markets more broadly, with bitcoin often tracking US stock market prices. So investors have been watching data on inflation and the health of the economy to see where bitcoin might end up next.
“In general, cryptocurrencies have also been lagging behind the traditional stock markets, so this is also somewhat of a catch-up move,” said Aiyar.
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