Cryptocurrencies witnessed a robust surge at the start of the week, driven by optimistic investors who are carefully assessing the prospects of a forthcoming US Bitcoin Exchange-Traded Fund (ETF).
Bitcoin Spikes Above $30,000 in Speculative Frenzy
On Monday morning, the Bitcoin to USD rate experienced a remarkable spike, surpassing the $30,000 mark in response to unverified reports of the formal approval of the iShares spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). However, the coin quickly relinquished these gains as major media sources could not verify the report. BlackRock clarified that the iShares Bitcoin ETP application is still under SEC review, dismissing the accuracy of Monday’s report.
Market Activity: Is Bitcoin dead?
In recent trading sessions, Bitcoin surged by about 5.28% to reach $28,454.17, as per data from Coin Metrics. Simultaneously, Ether demonstrated a 1.86% increase, trading at $1,589.10.
Last week marked a significant increase in Bitcoin’s profits following the SEC’s decision not to challenge the verdict in the Grayscale lawsuit against regulatory authorities. Grayscale initiated the lawsuit against the SEC in June 2022 due to the rejection of its request to transform the Grayscale Bitcoin Trust (GBTC) into an ETF.
Positive Developments in Bitcoin ETF Landscape
The Grayscale team confirmed that the Federal Rules of Appellate Procedure’s 45-day period for seeking a rehearing had elapsed. They anticipate the SEC’s approval to convert GBTC into an ETF. However, it’s important to note that the SEC may still deny Grayscale’s request. Still, recent developments have suggested a softening stance by the commission on crypto regulation, particularly in relation to Grayscale.
Cautious Optimism in the Market
As Bitcoin revival appears on the market, investors remain cautiously optimistic. Regulatory uncertainty in the US crypto sector has contributed to investor apathy, leading to low trading volume and liquidity. Consequently, Bitcoin has faced challenges in surging past $30,000.
Market Soars on Speculation
The recent speculative frenzy around the possibility of a Bitcoin ETF approval has propelled the cryptocurrency market. Although the situation remains fluid, investors are showing renewed interest in digital assets. This development comes at a time when traditional investors are prioritizing defensive investment strategies due to macroeconomic uncertainty. Bitcoin’s resilience and the potential shift in regulatory sentiment have played a pivotal role in boosting market confidence.