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Why did the price of Bitcoin reach $35,000 for the first time in the last 18 months?

Will the increase in the price of gold lead to the continuation of the upward trend of Bitcoin?
اکتبر 24, 2023
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price of Bitcoin

price of Bitcoin

According to some industry analysts, Bitcoin will see significant growth similar to the launch of the first gold ETF. However, the increased probability of approval of BlackRock’s spot ETF application was not the only factor that pushed the price of the cryptocurrency above $35,000 for the first time in 18 months.

According to Bitcoinist, yesterday marked a significant turning point in the long-running dispute between Grayscale and the US Securities and Exchange Commission. Based on the appeals court’s ruling, the agency must reconsider Grayscale’s request to convert the Bitcoin Trust fund into a spot bitcoin ETF.

Additionally, Julio Moreno, Head of CryptoQuant Research, noted:

The increase in the price of Bitcoin was primarily caused by short traders who were forced to cover their trading positions. As the price rose above $31,000, we saw a significant decrease in the volume of open Bitcoin transactions.

Joe Consorti, market analyst at The Bitcoin Layer, also confirmed this opinion and stated:

When the price of Bitcoin reached $31,000, there was a significant accumulation of futures positions, reminiscent of the jump from $25,000 to $30,000 that we saw in late June. Of course, the price increase caused by financial leverage can be risky; Because it resembles a structure built on unstable grounds.

According to CoinDesk, in a note, Bernstein attributes the reason for the recent increase that caused the price of bitcoin to cross the $31,000 resistance line to BlackRock, which lists its bitcoin spot ETF under the symbol BITC on the Nasdaq Stock Exchange Clearing Company (DTCC). ) listed.

Jack Tan, co-founder of Wu Network, also said:

Bitcoin is in an “anti-gravity” phase and its price could reach $75,000 in the coming months.

Bitcoin chart

Bitcoin chart

He added:

This sudden jump was just a preview of what will happen if ETFs are approved. Given that the Grayscale Bitcoin Trust’s discount fell to 16% by the end of Friday, it appears that much of this impact on Bitcoin’s value began at the $25,000 price level in February.

Tan also noted that altcoins tend to trade more in line with tech companies’ stock price trends; Because they do not have the safety mechanism of Bitcoin. He expects them to underperform Bitcoin and Ethereum, and eventually Ethereum will experience Bitcoin-like growth.

David Lo, head of Baybit’s financial products department, said:

Bitcoin has received most of these positive catalysts and its dominance is now at its highest level since early 2021, taking market share from Ethereum and stablecoins.

He noted:

However, the reduced discount could lead to selling pressure for Grayscale Bitcoin Trust in the future; There are probably investors who bought shares of this fund at a 40% discount and are now looking to sell.

Quinn Thompson, Head of Capital Markets and Growth at Maple Finance, confirmed the comments of BlackRock CEO Larry Fink, who described the recent growth of the digital currency market as a safe haven amid challenges in the global economy. :

Bitcoin is emerging as the modern gold, serving as a safe haven for investors in times of economic instability.

Fink’s comment about moving to a safe spot echoes the recent comments of Paul Tudor Jones, who said that 20 years ago, gold was doing it, but now Bitcoin has replaced it.

Thompson also said in a recent interview that if the US Securities and Exchange Commission had planned to reject applications for spot ETFs, companies like BlackRock and Fidelity would not have risked their reputations in such a way.