Bitcoin surged to new heights, breaking the $41,000 mark on Monday, marking its highest point in 18 months. The momentum followed a breakthrough past the $40,000 level earlier in the day, reflecting a remarkable 149% increase in Bitcoin prices in 2023 alone and pushing the coin’s market cap to approximately $810 billion.
The surge within the last 24 hours resulted in substantial liquidations, with approximately $209.8 million worth of positions being closed during this period, as per data from Coinglass. Notably, this price growth is particularly fueled by the growing optimism surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF).
The U.S. Securities and Exchange Commission (SEC) anticipates greenlighting ETFs directly investing in Bitcoin, a departure from the previous focus on futures tied to the cryptocurrency. Some analysts have suggested that such approval could have a bullish impact on prices. Still, opinions vary on whether it will quell Bitcoin’s notorious price volatility, a factor that has historically affected its appeal as a safe-haven asset.
Cryptocurrency expert Willy Woo shared insights in a Monday tweet, hinting at the possibility of Bitcoin undergoing an exponential surge akin to gold. Drawing parallels, he referenced the inception of the first commodity ETF, SPDR Gold Trust, which provided investors with a straightforward means to incorporate gold into their portfolios. Notably, the launch of SPDR Gold Trust marked the beginning of an eight-year rally for gold, during which there wasn’t a single down year observed between 2005 and 2012.
Glassnode, a prominent crypto analytics firm, also shed light on the potential impact of ETF approval on Bitcoin’s trajectory. As per the firm, approving a spot Bitcoin ETF could attract a significant influx of new demand from professional investors. This is supported by the confidence of long-term holders in the trend, given the diminishing tradable supply of Bitcoin amidst increasing interest from traditional financial players.
As ZyCrypto reported, Figures like Paul Tudor Jones and BlackRock’s Larry Fink have previously recognized Bitcoin’s potential as a ‘flight to quality’ asset, emphasizing its transition from a primarily individual investor-favored digital asset to an institutional-grade investment.
That said, following Bitcoin’s recent surge, the crypto community eagerly awaits the unfolding of events surrounding the potential approval of a spot Bitcoin ETF, contemplating whether the cryptocurrency can achieve the elusive $50,000 milestone sooner than anticipated.
