On Monday, a surge in Bitcoin’s price saw it briefly touch the $35,000 milestone, sending ripples of excitement across the Bitcoin ETF landscape.
The value of Bitcoin, often represented as BTC, experienced an astonishing breakthrough, surpassing the $35,000 mark for the first time since May 2022. This surge, amounting to a remarkable gain over the past 24 hours, captured the attention of the crypto world.
The sudden upswing in Bitcoin’s value occurred on October 23, propelling BTC’s price upwards by more than 10%, from $31,000 to over $34,000. Remarkably, within a mere two hours of crossing the $34,000 threshold, Bitcoin reached an impressive $35,300, as indicated by data sourced from TradingView. Presently, Bitcoin is being traded at a price of $34,550.
This sudden surge in Bitcoin’s price coincides with a fresh wave of interest in forthcoming spot exchange-traded fund (ETF) approvals, alongside a substantial surge in trading activity across spot markets.
Additionally, this price surge is intertwined with developments related to BlackRock’s proposed spot Bitcoin ETF. On October 23, analyst Scott Johnson, formerly known as Twitter, highlighted two significant pieces of information hinting at the imminent approval of a spot Bitcoin ETF by the investment giant, BlackRock. Johnson pointed out that BlackRock had successfully secured a specific “CUSIP” license and might soon commence the process of “seeding” its spot ETF product with cash, as early as this month. Responding to this development, senior Bloomberg ETF analyst Eric Balchunas pointed out that seeding an ETF usually involves a relatively modest amount of money, sufficient to set an ETF in motion. However, he acknowledged that this development is a positive indicator, marking “another step in the process of launching.”
The sudden price upsurge is accompanied by a significant upswing in Bitcoin’s spot trading volume. As of the time of this publication, spot trading volume has surged beyond $35 billion within the past 24 hours, reflecting an astonishing 241% gain in the same time frame, as per data obtained from CoinMarketCap.
While Bitcoin experienced the most substantial price surge, this bullish momentum extended its favor to other cryptocurrencies. Ethereum’s native cryptocurrency, Ether (ETH), recorded a 7% increase, while Solana’s SOL saw a remarkable 11% surge. Moreover, Dogecoin (DOGE) saw an 8% upswing, and Cardano (ADA) followed suit with a 5% gain.
The crypto community and market commentators appeared bewildered by this abrupt upward movement. Independent journalist Autism Capital, with a following of 237,000, posed the question to their audience, “What just transpired?”
Zooming out from the immediate price action, a favorable backdrop seemed to be in place for this sudden surge in cryptocurrency prices. Data from CoinShares indicated that digital asset investment products had witnessed a fourth consecutive week of inflows, reinforcing the growing interest and confidence in the digital asset space.
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