Bitcoin crosses $34,000 to the highest since May 2022 on ETF hopes

 

Backed by hope for a Bitcoin ETF, the price of Bitcoin surpassed $34,000 and reached its highest point since May of last year.

According to data from Coin Metrics, Bitcoin was trading at $34,596.40 on Tuesday morning, Asia time.

After the court ruled with Grayscale over the U.S. SEC in its attempt to convert its sizable GBTC bitcoin fund into an ETF, speculation about a Bitcoin ETF increased.

A bitcoin exchange-traded fund's popularity helped the price of bitcoin surpass $34,000 and reach its highest level since May of last year.

According to information from Coin Metrics, the biggest cryptocurrency in the world was trading 4.97% higher at $34,596.40 on Tuesday.

According to statistics from Coin Metrics, Ether, the second-largest digital coin, rose to its highest level since August.

"The real catalyst that created the 'god candle' earlier today and pushed bitcoin above $34,000 was the $167 million in short liquidations, mainly on offshore exchanges," claimed Ryan Rasmussen, an analyst at Bitwise Asset Management.

Rasmussen said the degree of price activity we're seeing, "I don't believe anyone expected, and those investors who were shorting bitcoin in the $33,000 plus region are clearly experiencing the impact of that surprise today.

After the U.S. Securities and Exchange Commission was defeated in Grayscale's attempt to convert its sizable Grayscale Bitcoin Trust (GBTC) bitcoin fund into an ETF, anticipation of a bitcoin ETF increased.

Hopes that an ETF tied to Bitcoin may be approved in the coming months were raised last week when the SEC decided not to appeal that decision by a crucial deadline.

Without owning the cryptocurrency, investors might use a Bitcoin ETF to get exposure to price changes.

Regarding asset volatility, bitcoin is seen as having extremely unpredictable price swings.

Major financial institutions have been pushing for bitcoin ETFs and submitting applications to sell such assets, portraying them as safer investment options compared to direct cryptocurrency investments known for their speculative nature and price volatility. These institutions include BlackRock, Invesco, Fidelity, and Grayscale.

According to Coinbase, it is certain that the U.S. SEC will approve a bitcoin exchange-traded fund.

Investors paying close attention

The cryptocurrency sector is eagerly monitoring these trends that might indicate a resurgence.

The industry has experienced high drama and scandal over the past year, including FTX's bankruptcy and Terraform's CEO Do Kwon being indicted in February with investment fraud.

In November 2021, the price of Bitcoin reached an all-time high, reaching over $65,000. However, a year later, in November of the previous year, the value fell to about $16,000. That is the time that Sam Bankman-Fried's cryptocurrency exchange FTX failed and declared bankruptcy.

The SEC has been cracking down on cryptocurrency businesses, and organizations like Coinbase and Ripple are currently involved in legal battles with the SEC after being accused of breaking securities regulations.

As a result of the SEC's crackdown, companies like Coinbase and Ripple have threatened to leave the United States and criticized the U.S. for its unclear crypto legislation.