In a significant surge, Bitcoin, the world’s largest cryptocurrency, rose by 3.62% on Monday, reaching a three-month high at $31,087. This boost in Bitcoin’s value can be attributed to the growing investor optimism regarding the potential approval of a spot Bitcoin exchange-traded fund (ETF). This positive sentiment also extended to shares of cryptocurrency and blockchain-related companies, notably Coinbase Global and Marathon Digital Holdings, which saw their values jump by 6.5% and 11.9%, respectively.
The recent rise in Bitcoin’s price comes amid increased uncertainty in the broader financial markets, partly fueled by a spike in the yield on 10-year U.S. Treasuries, reaching as high as 5.021%. Concerns revolve around the possibility of a wider regional conflict due to the ongoing conflict between Israel and the Islamic group Hamas.
The surge in Bitcoin’s price also appears to be influenced by a misinformed news report that claimed asset manager BlackRock had submitted a high-profile application for a spot Bitcoin ETF. If approved, this ETF would have the capability to track Bitcoin’s underlying price. Currently, the U.S. Securities and Exchange Commission (SEC) is reviewing the proposal and is expected to make a decision by early 2021. Nevertheless, investors have already demonstrated strong confidence in the potential approval of the fund.
Matteo Greco, a research analyst at Fineqia, a company specializing in crypto and fintech investments, commented on this recent development, stating, “Over the past month, the growing investor confidence in the imminent approval of BTC spot ETFs has driven considerable momentum toward BTC.”
Ether, another widely-used cryptocurrency, experienced a 1.57% increase in value, reaching $160.3, mirroring the positive sentiment in the cryptocurrency market. The overall enthusiasm surrounding cryptocurrencies and the confidence in the possible introduction of a spot Bitcoin ETF reflects the growing trust in the underlying blockchain technology and its applications.
With Bitcoin reaching a three-month high, investors are closely monitoring the evolving landscape of cryptocurrency markets and eagerly await regulatory decisions that could further impact its trajectory.
Source: Reuters
