There was a time when Bitcoin, the world’s most prominent cryptocurrency, saw its price drop steeply in response to the volatility of the crypto sector, specially during and post COVID. The crypto market lost trillions of dollars after its peak in November 2021. Now, after a long time, Bitcoin has finally clocked a strong comeback as it achieved an impressive 16% rally, surging to an 18-month high of $35,080.66 in the early hours of Tuesday. This remarkable ascent comes amid mounting speculation surrounding the approval of a Bitcoin exchange-traded fund (ETF) in the US, raising hopes among cryptocurrency enthusiasts and investors alike.
Currently, Bitcoin has dropped a bit to be priced at $33,952.30.
The surge in Bitcoin’s value marks a significant milestone, as it hasn’t reached such heights (above $34,000, that is) since May 2022. Over the past 24 hours, Bitcoin’s value has surged by more than 10.5%, and year-to-date, the cryptocurrency has effectively doubled in value. Of course, the excitement is not confined to Bitcoin alone. Ethereum, the world’s second-largest cryptocurrency by market capitalization, also witnessed a notable uptick. With a gain of over 7.2% compared to the previous day, Ethereum broke the $1,800 barrier for the first time in nearly two months.
The primary driver behind this crypto euphoria is the anticipation of the imminent approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). Many experts argue that the introduction of a spot Bitcoin ETF could open up a new avenue for traditional investors who were previously hesitant about cryptocurrencies. This ETF would essentially provide indirect exposure to Bitcoin through the stock market, potentially attracting a significant influx of capital into the cryptocurrency sector.
By offering a bridge between traditional financial markets and the world of digital assets, Bitcoin ETFs hold the promise of introducing a broader spectrum of investors to cryptocurrencies. As the digital currency market continues to evolve, Bitcoin and its counterparts are poised to play an increasingly influential role in the global financial arena.
The positive sentiment surrounding Bitcoin’s rally has cascaded throughout the cryptocurrency market. Crypto-related stocks have felt the impact, with major U.S. exchange Coinbase Global and Bitcoin holder MicroStrategy experiencing significant gains during after-hours trading. What’s even more intriguing is that the approval of a Bitcoin ETF by the SEC could set the stage for additional Bitcoin ETF approvals. Several prominent financial institutions, including VanEck, WisdomTree, Fidelity, Bitwise, and Invesco, currently have pending Bitcoin ETF applications. This suggests the potential for a series of ETF approvals on the horizon.
Bitcoin’s resurgence paints a picture of the growing confidence among cryptocurrency investors and the broader financial ecosystem. In the year 2021 alone, Bitcoin’s value has surged by 107%, contributing over $300 billion in market capitalization. Its current market capitalization stands at an impressive $670 billion.
