Bitcoin Touches $37k on ETF Optimism

Bitcoin has surged past the $37,000 mark for the first time since the Terra ecosystem’s collapse 18 months ago, which precipitated a widespread market downturn.

At the time of reporting, the preeminent cryptocurrency was trading at $37,278, as per CoinGecko data, marking a 5% increase within a span of 24 hours and over 35% in the last month.

This price level for Bitcoin hasn’t been seen since it tumbled in the wake of Terra’s downfall, which at the time, was a pivotal player in the cryptocurrency arena. The fallout led to a domino effect, causing several notable crypto enterprises and initiatives to declare bankruptcy, including the well-known trading platform FTX.

Kicking off the year, Bitcoin’s value was below $17,000, which means it has now ascended by more than 124%. However, it has yet to approach its peak of $69,044 reached in November 2021.

The current rally could be attributed to growing optimism about the potential approval of a spot Bitcoin ETF. Several prominent Wall Street entities have submitted applications to the U.S. Securities and Exchange Commission (SEC) for such an investment product, which would allow investors to gain Bitcoin exposure through shares that reflect its value.

The push for a Bitcoin ETF gained traction earlier in the year when BlackRock, the world’s leading asset manager, filed its application. JP Morgan analysts recently suggested that the SEC might likely approve a spot Bitcoin ETF by as early as January 2024, which would be a landmark decision following a decade of rejections.

According to Bloomberg Intelligence analysts James Seyffart and Eric Balchunas, there’s now an opportunity for the SEC to greenlight all 12 pending Bitcoin ETF applications.

The broader cryptocurrency market is also experiencing a notable uplift, with other major cryptocurrencies like Solana surging over 10% to reach $47.68, and Chainlink, ranked 12th by market capitalization, climbing more than 11% to trade at $15.51.

Today, the cumulative market capitalization of all cryptocurrencies rose by 3.5%, hitting $1.44 trillion, signaling a buoyant phase across the board.