The price of Bitcoin crossed $30,300 a few minutes ago and is currently at $30,200 as of the time of writing. So, what is the reason behind this increase? The optimism we have been highlighting for days is causing the forgetfulness of the unsuccessful tests in the past few months. Crypto investors are once again showing interest in altcoins as BTC closes daily at new highs.
Why is Bitcoin Rising?
There are many reasons for this, but the main reason is that we are on the verge of ETF approval. Spot ETF approval for BTC means at least $150 billion of institutional and qualified investor inflows. This is the very figure that can help the market value exceed the $1 trillion threshold once again. The process of converting GBTC into an ETF has begun, and it seems that the SEC will not further complicate the path.
- The court stated that it does not make sense to approve future ETF rejections while granting futures BTC ETF approval to the SEC.
- A letter written by US Representatives accuses the SEC of not approving ETFs due to its current negative approach. It even warns that you will not be able to explain this attitude in the future.
- The SEC suffered a major defeat in the Ripple case and dropped the case against executives after the summary judgment loss.
- JPMorgan believes in the approval of spot Bitcoin ETF this year.
- ETF experts at Bloomberg give a 95% chance of ETF approval next year.
- The CEO of BlackRock described the recent surge on Monday as “pent-up demand” and said that interest in crypto will continue to grow.
When we put all of these together, we also need to remember the Fed. As long-term bond yields reach new highs, Powell emphasized last week that further tightening may be happening with this increase.
In conclusion, BTC is rising due to multiple reasons. However, there are a few issues. The cumulative volume is still below $40 billion, and liquidity on exchanges is still shallow. So, despite all the optimism, the price could return to the $27,300 region where it started rising again due to miner sell-offs (the recent drop was because of this).
