- !Bitcoin’s price breached the $35,000 mark for the first time since May 2022.
- Speculations around spot Bitcoin ETFs drive the surge.
- Geopolitical turmoil and its implications also play a significant role.
Bitcoin’s monumental rise above $35,000 brings to light the increasing optimism for spot ETFs and diversification strategies amidst geopolitical unrest.
Bitcoin’s Remarkable Leap to $35,066
On a vibrant Tuesday, Bitcoin showcased its might by crossing the $35,000 mark. The world’s largest cryptocurrency by market capitalization touched an impressive $35,066, an increase of 14.8% in just a day. With a weekly gain of 22.8%, the crypto giant rekindled memories of its performance in May 2022, the last time it ventured beyond the $35,000 benchmark.
Driving Factors Behind the Surge
According to Lucy Hu, a senior trader at Metalpha, the recent exhilarating surge can largely be credited to the heightened anticipation of Bitcoin ETFs this year. However, geopolitical undertones also seem to play a role. The intensifying Middle East conflict has prompted institutional investors to pivot towards Bitcoin, eyeing it as a diversification strategy. Jack Tan, CEO of WOO Network, concurred, suggesting that Bitcoin might continue its upward journey as a hedge against geopolitical unrest, hinting at the inevitable governmental response of increased spending and money printing.
The Ethereum Angle
While Bitcoin takes much of the limelight, Ethereum isn’t far behind. The second-largest cryptocurrency, Ethereum, registered a 7.8% hike over the past day and accumulated a commendable 13.5% over the week. Its performance acts as a testament to the bullish sentiment prevailing in the crypto sphere.
BlackRock’s Endeavors with Bitcoin ETF
The crypto price movements seem to align with BlackRock’s ventures into the Bitcoin ETF space. The global investment giant’s much-awaited spot bitcoin ETF, the iShares Bitcoin Trust, recently graced a list by the Depository Trust and Clearing Corporation. As Eric Balchunas, senior ETF analyst at Bloomberg, points out, this move by BlackRock, being at the forefront of ETF logistics, indicates a potential imminent approval, further bolstering the market’s optimism.
Conclusion
The crypto landscape appears to be on an optimistic trajectory, with Bitcoin’s recent surge being a testament. While spot ETF speculations are driving this bullish sentiment, the undercurrents of geopolitical disruptions cannot be ignored. As the world treads through uncertain times, the allure of cryptocurrencies, with Bitcoin at its helm, seems to be unwavering, promising intriguing developments in the near future.
