The price of bitcoin catapulted higher on Monday, surging past the key resistance level of $34,000 as traders bet that the long-awaited approval of a spot bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission could finally happen in the near future.
- Bitcoin bears lost $178 million as prices surged past $34K. Exchanges like Binance, Huobi and OKX saw $50 million in liquidations each, suggesting high leverage.
- The price spike was likely driven by hopes of a spot bitcoin ETF approval, after BlackRock registered a ticker symbol for a bitcoin ETF.
- Analysts say bitcoin is in an “anti-gravity” phase and could hit $75,000 soon with ETF approvals. The price impact has been priced in since $25,000.
- Altcoins are underperforming bitcoin, which is gaining market share. Ether may eventually catch up.
- Bitcoin is seen as a “flight to quality” asset amid economic uncertainty, like gold used to be. This mirrors comments from BlackRock’s Larry Fink.
- Analysts believe SEC approval of a spot bitcoin ETF is nearing, based on BlackRock’s public comments and ticker registration. This has fueled the recent rally.
The leading cryptocurrency rallied over 12% during Monday’s trading session, fueled by mounting optimism that the regulatory approval of a spot bitcoin ETF is right around the corner. This dramatic move led to over $178 million being liquidated from bearish leverage positions on major exchanges including Binance, Huobi and OKX, as short sellers were caught off guard by bitcoin’s sudden ascent.
“Bitcoin is in an ‘anti-gravity’ phase and could hit $75,000 soon with ETF approvals,” said Jack Tan, an analyst at Woo Network. “The price impact has been priced in since $25,000.”
According to experts, the main catalyst behind bitcoin’s breakout was BlackRock’s registration of a ticker symbol for a spot bitcoin ETF last week. This action stoked hopes that after years of rejection, the SEC is finally preparing to give the green light to a spot bitcoin ETF which would allow direct ownership of bitcoin through regulated stock exchanges.
— Lookonchain (@lookonchain) October 24, 2023
“Bitcoin has been the recipient of most positive catalysts recently, and is gaining market dominance from altcoins and stablecoins as investors treat it as a ‘flight to quality’ asset,” said David Lo, head of financial products at Bybit.
Major players in the crypto sector point to recent comments made by BlackRock CEO Larry Fink about bitcoin serving as a refuge during turbulent economic times as a sign the asset manager believes SEC approval is imminent.
With optimism surging, the long wait appears to be nearly over. The anticipated regulatory approval has become a self-fulfilling prophecy, with bitcoin’s price breaking key thresholds. After years of rejection, the SEC may finally satisfy pent-up demand by giving the green light to a spot bitcoin ETF.