“Bitcoin’s remarkable resurgence has left skeptics flabbergasted as it defies all expectations, more than doubling its value this year, proving once again that it is a force to be reckoned with in the financial world.”
Bitcoin’s Resurgence: Doubling in Value and Bullish Sentiment
Bitcoin has made an impressive comeback this year, with its value more than doubling despite a tumultuous 2022 that saw many doubting the future of digital assets. The largest cryptocurrency by market value has experienced a three-day rally, pushing its price back to around $35,000, the highest level in about 18 months. This comes after a significant drop of 64% last year due to industry scandals and bankruptcies, following a record high of almost $69,000 in late 2021.
One of the driving factors behind Bitcoin’s recent rally is the growing expectation that the U.S. Securities and Exchange Commission (SEC) will authorize exchange-traded funds (ETFs) that invest directly in the cryptocurrency. After a decade of deliberation, this development has fueled a more than 25% rally over the past two weeks. Darius Tabatabai, co-founder at decentralized exchange Vertex Protocol, stated, “Sentiment is clearly bullish as more and more signs start to reveal what appears to be a likely, imminent listing for a spot Bitcoin ETF in the U.S.”
In recent news, a federal appeals court has formalized a victory for Grayscale Investments LLC in its bid to create a Bitcoin-based ETF. Last week, Bitcoin briefly surged 10% on an erroneous report that BlackRock Inc. had won SEC approval for an ETF. These events have contributed to the overall optimism in the market.
Geopolitical strains are also playing a role in Bitcoin’s rally, according to Matthew J. Maley, chief market strategist at Miller Tabak + Co., LLC. He believes that the increase in geopolitical hotspots worldwide is raising the odds of cryptocurrencies becoming important currencies sooner than previously anticipated.
The three-day rally in Bitcoin is the largest since March, when it climbed above $26,000 for the first time since June of the previous year. While short-term price pullbacks may occur, James Butterfill, head of research at CoinShares, believes that Bitcoin is poised to continue rising over the long term. He states, “Before the ETF hype, Bitcoin’s price closely mirrored the expected probabilities of a December rate hike. As these probabilities decrease in light of increasing treasury yields, it seems it could further support prices, poising to shape the next bull market for Bitcoin over the longer term.”
Overall, Bitcoin’s resurgence in value and the bullish sentiment in the market are indicative of a positive outlook for the cryptocurrency. Despite previous challenges, it continues to demonstrate its resilience and potential for long-term growth.
This article was provided by Bloomberg News.