The Astonishing Surge of Bitcoin: Unveiling the Hidden Secrets Behind Its Recent Rise
Bitcoin's meteoric rise continues as it surpasses $35,000, its highest value since May 2022, marking a remarkable 20% surge over the past five days
Bitcoin is soaring, surpassing $35,000 for the first time since May 2022. In the past five days alone, it has increased by 20%.
This highly unpredictable digital currency has more than doubled in worth this year. Investors are becoming increasingly enthusiastic about the opportunity to invest in bitcoin funds that are traded on traditional, well-regulated stock exchanges, thus avoiding the complications and potential risks associated with less-regulated and unreliable crypto platforms such as FTX and Binance.
According to Reuters, the recent wave of excitement was sparked by the inclusion of BlackRock's bitcoin exchange-traded fund (ETF) on the Depository Trust and Clearing Corp.'s controlled list. BlackRock, known for managing trillions of dollars in assets and being the world's largest ETF provider, applied for registration of a bitcoin spot ETF in June. If approved, this move would bring a newfound sense of credibility to the cryptocurrency.
Samer Hasn, market analyst at online brokerage XS.com, stated that the inclusion of this listing in the DTCC does not confirm the fund's launch or guarantee its occurrence. Nevertheless, it suggests that BlackRock is making preparations for the forthcoming launch of the ETF. Grayscale Investments and other firms have also sought approval to launch similar bitcoin ETFs.
The US Securities and Exchange Commission's ruling against Grayscales ETF was overturned in August by a three-judge panel for the DC Court of Appeals. The panel found that the regulators decision lacked sufficient explanation for rejecting the firms application, subsequently contributing to the summer surge in cryptocurrencies.
The fund has not yet been approved by the SEC, and investors might be acting prematurely.
Hasn expressed his belief that the sudden increases in bitcoin value are somewhat inflated. He noted that regulatory and legislative issues are still creating uncertainty in the market, and he does not anticipate these concerns being resolved anytime soon due to ongoing legal disputes.
There is another reason for the rising value of bitcoin: fear. In times of uncertainty, investors seek to diversify their portfolios, and some are turning to bitcoin as a digital safe haven. Often referred to as 'digital gold,' bitcoin offers an opportunity for investors to explore alternatives to traditional stocks and bonds.
