There is news that the possibility of the introduction of Bitcoin and Ethereum spot ETFs continues to increase. Affected by this, the price of Bitcoin rose by more than 6% on Thursday morning Eastern Time, exceeding $37,000, setting a new high this year and reaching this price for the first time since May 2022. Ethereum surged nearly 8% to US$2,047.1, breaking through the key point of US$2,000 for the first time since April this year. Led by Bitcoin and Ethereum, other cryptocurrencies followed suit on Thursday.
Earlier news showed that the U.S. Securities and Exchange Commission (SEC) may approve 12 spot Bitcoin ETFs before November 17. Grayscale, the largest cryptocurrency asset management company in the United States, previously sought to directly convert the company’s Bitcoin trust fund into a spot Bitcoin ETF. The company’s CEO Michael Sonnenshein said that although there is no fixed timetable for launching a Bitcoin ETF, the company The company is in contact with the SEC. BlackRock also revealed that it has begun applying for the launch of an Ethereum spot ETF.
Michael Sonnenshein said he believes the SEC is leaning toward agreeing that Bitcoin spot ETFs have a positive effect in protecting investors without increasing the risks for ordinary investors. He said that there are about 1 million investors in the United States. If the Bitcoin Investment Trust can be upgraded to a spot ETF, its additional supervision can bring more protection to investors.
The sharp rise in the price of Bitcoin has led to a short squeeze, further pushing up the price of Bitcoin. Goldman Sachs analysts said that preliminary market data shows that this round of surge is mainly driven by institutional investors. Signs include the influx of large amounts of funds into Bitcoin investment products, the lack of improvement in the trading volume of Bitcoin through conventional methods, Bitcoin futures and The number of options open interest hit a new high.
Analysts said that the cryptocurrency market has been clouded in the past year or two and is eager for any good news. The news that a spot ETF may be launched can be said to bring relief to the cryptocurrency market after a long drought. Many analysts believe that the Bitcoin spot ETF may be approved at any point in the future, and there is a 90% chance of approval before January 10 next year. However, it will take weeks or months after approval for the ETF to be truly approved. Listed.
Analysts said, “If the Bitcoin spot ETF is approved, we will see a new wave of gains, or at least reach the level of the current increase. But fundamentally speaking, it is too early to predict whether this wave of gains can continue, but It looks promising.” Some analysts also said that before the spot ETF is actually released, Bitcoin’s rise may continue for more than a month.
Led by Bitcoin, other cryptocurrency assets also saw big gains on Thursday. Among them, Solana, which had the largest increase this year, once rose by 11%, Ethereum (Ether) rose by 7.29%, Cardano and Polygon once rose by 4% and 3% respectively.
Analysts say past experience shows that when Bitcoin surges, Ethereum and other cryptocurrencies don’t follow suit for long. Bitcoin is up more than 120% so far this year, and the outlook for many other cryptocurrencies is also starting to look bullish.
In addition, Bitcoin trading platform Coinbase surged 10%, and Microstrategy, which uses Bitcoin as a treasury asset, surged 12%. At the same time, the stock prices of Bitcoin mining companies were also driven up, with Marathon Digital and Riot rising by 18% and 13% respectively, and CleanSpart rising by 10%.
Since rising nearly 30% last month, Bitcoin has continued to surge 6.6% this month, surprising and doubting many investors. Material Indicators, which tracks cryptocurrency data, said on the At the same time, the resistance point has moved up from $40,000 to $42,000.
Material Indicators said that while the current price point is challenging a number of different top signals, there is no doubt that this trend looks a little abnormal. The most obvious warning sign is that the price is declining amid declining trading volume. Rising, “Situations like this usually don’t end well, but we’ll also see if this time is different.”
In addition, cryptocurrency analysis company Skew also said that $40,000 may become a key psychological point. Large short sellers have been selling Bitcoin in recent days and are expected to sell around $38,000 to $40,000.
However, financial commentator Tedtalksmacro pointed out that open positions in Bitcoin futures are increasing, with the total value now reaching $17 billion, a new high since mid-April this year. Tedtalksmacro believes that during a bear market the market will downplay the impact of these positions, but when the market ignores this and continues to rise despite an increase in open interest, it is a full bull market time and should be worth paying attention to.
(Editor: Wen Jing)