Unexpected Boom: Bitcoin Hits 12-Month High After 48-Hour Rally

2023-10-24 17:47:05

Photo: Pixabay

In recent days, digital currency markets have witnessed a real revolution. Bitcoin has surprised investors around the world by registering an impressive 6% increase, briefly reaching US$35,198 per unit. This price marks a milestone, being the highest in approximately a year and a half.

This staggering surge came on the heels of a 10% surge the previous day, marking Bitcoin’s best performance in almost a year. This notable bullish wave has had a significant impact on the cryptocurrency market as a whole, leaving its mark on related stocks.

Speculation about the imminent approval of a Bitcoin Exchange Traded Fund (ETF) by the US Securities and Exchange Commission (SEC), the US capital markets regulator, has driven demand to surprising levels.

A federal appeals court recently upheld a victory for Grayscale Investments LLC in its attempt to create a Bitcoin ETF, despite objections from the SEC. Until now, the SEC had been reluctant to approve ETFs that invested directly in Bitcoin, citing risks such as fraud and manipulation in the underlying market.

Any approval of a Bitcoin ETF by the US Securities and Exchange Commission (SEC) is expected to further drive demand. The possibility of a spot bitcoin ETF has raised expectations that more investors will be able to access the cryptocurrency market through the stock market, which could usher in a new wave of investment in this sector.

Cryptocurrency-linked stocks, such as leading cryptocurrency exchange Coinbase Global and Bitcoin owner MicroStrategy, saw notable increases in Wall Street trading after the market closed. Data from Coinglass revealed marked short covering of Bitcoin in the last 24 hours.

This recent Bitcoin boom raises the question of whether we are witnessing the beginning of a new era for investors. With hopes for a Bitcoin ETF on the rise and speculation about approval from major financial players, the future of Bitcoin looks brighter than ever. However, as always in the world of cryptocurrencies, volatility is a constant, and investors should remain alert for any unexpected turns in this exciting financial journey.