Why Is Bitcoin (BTC) Moving Up?

Why Is Bitcoin (BTC) Moving Up?

Grand News Network / October 24, 2023 2:45 PM

The recent rally in Bitcoin's price over the last week can be attributed to several factors:

Optimism Around Bitcoin ETF Approval:

  • The cryptocurrency markets, especially Bitcoin (CRYPTO: BTC), have experienced a boost due to optimism surrounding the potential approval of a Bitcoin Exchange Traded Fund (ETF) in the US​.

  • The speculation around the Bitcoin ETF has been building up, with a notable instance on October 16th when a false news report regarding the approval of a Blackrock ETF led to a brief price jump.

  • Financial institutions are showing increased interest in providing access to Bitcoin investing to their clients through ETFs. The expectation of a fully-fledged Bitcoin ETF in the US has significantly ramped up, with several asset managers like BlackRock and Franklin Templeton filing for a Bitcoin spot ETF. Analysts believe that the approval of such ETFs could lead to a substantial inflow of capital into the Bitcoin market, potentially boosting its price significantly​.

Statements from Influential Figures:

  • A CEO managing $9 trillion in assets mentioned that this rally is just the beginning, indicating a belief in continued capital flow into the cryptocurrency market, which can instill confidence among investors.

Technical Factors:

  • There was a mention of Bitcoin breaking through the $30,000 barrier for the first time since mid-August, which could be considered a technical breakout, possibly triggering buying activity from traders and investors following technical analysis strategies.

Further Speculation:

  • According to a recent Cointelegraph article, the proposed iShares spot Bitcoin ETF by BlackRock has recently been registered on the Depository Trust & Clearing Corporation (DTCC), hinting at a possible nod from the US Securities and Exchange Commission. On Oct. 23, in a thread on X (previously known as Twitter), Bloomberg ETF specialist Eric Balchunas mentioned that the DTCC registration is a step forward in the journey of launching a crypto ETF. The iShares spot Bitcoin ETF, with a ticker identifier of IBTC, could potentially make its way to the Nasdaq stock exchange, following an application for listing and trading shares of this investment tool back in June.

Eric Balchunas stated: “This is [the] first spot ETF listed on DTCC, none of the others on there (yet),” said Balchunas. “Def notable BlackRock is leading charge on these logistics (seeding, ticker, dtcc) that tend to happen just prior to launch. Hard not to view this as them getting a signal that approval is certain/imminent.”

Balchunas theorized that BlackRock might have attained preliminary approval for the ETF listing ...

Full story available on Benzinga.com

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