The value of Bitcoin crossed the $66,895 threshold for the first time in history in October.
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bitcoin It rose to its highest level in more than a month on Wednesday as traders got excited about the prospect of a spot bitcoin ETF after a series of recent filings, including black stone.
Bitcoin rose nearly 10% to $30,621.80, the highest level since April, extending gains made earlier in the day, according to data from Coin Metris.
Investors are increasingly bullish on the prospect of BlackRock and other major institutions getting involved in digital assets.
Despite all the bad news surrounding the crypto space lately, the market is still reeling from the FTX debacle scandal and the ensuing regulatory fallout.
Vijay Ayyar, head of international markets at CoinDCX, India’s largest cryptocurrency exchange, told CNBC: “The series of spot bitcoin ETF application announcements by large institutions has definitely revived the bullish sentiment in the cryptocurrency market.”
“We also have major support at $25,000 for BTC, and we’ve seen that move driven more by pure spot buying rather than a pretty healthy short liquidation type move,” Ayyar said.
“Looking at the market structure for BTC, we have broken a major downtrend that started in April of this year and lasted about 2 months, so most traders would expect us to test at least $32,000. A break above that level would open $36,000 and then It’s $45,000 to $48,000.”
Earlier this week, BlackRock submitted an application for a spot bitcoin ETF that would track the underlying market price of bitcoin. Crypto proponents say this will give investors exposure to bitcoin without needing to own the underlying asset.
Coinbase Listed as bitcoin custodian for proposed BlackRock ETF. BlackRock and Coinbase have an existing strategic partnership. Major U.S. cryptocurrency exchanges have had a rough time recently amid intense regulatory pressure from the U.S. Securities and Exchange Commission.
After BlackRock’s announcement, a string of other asset managers have filed their own bitcoin ETF applications, including WisdomTree.
Elsewhere, investors are keeping a close eye on macroeconomic indicators for movement in the cryptocurrency market.
Previously, digital coins were tied to broader financial market movements, with bitcoin typically tracking prices in U.S. stock markets. As such, investors have been watching data on inflation and the health of the economy to see where Bitcoin will trade next.
“Cryptocurrencies in general have also been lagging behind traditional stock markets, so it’s also playing catch-up in a sense,” Ayyar said.
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