Flagship digital asset Bitcoin has continued to make an upward trajectory as we head into the last week of October. At press time, the cryptocurrency has surged by 2.4% in the last 24 hours and recorded a 13% rally in the last seven days to sit at $30,608, per coinmarketcap data.
This trend indicates that the largest crypto by market cap is a only few dollars away from hitting $31,000, a mark it last crossed far back in April.
There are so many speculations in the market at the moment. Traders and analysts continue to predict the next market move for the asset but what does the $30,000 mark mean for the coin and what could be expected going forward?
Let’s have a look.
The significance of the $30,000 mark for Bitcoin
The $30,000 mark holds considerable significance for the largest crypto by market cap, functioning as both a psychological milestone and a technical resistance point. For the former, this mark represents a round figure influencing investor sentiment, inspiring confidence when surpassed and raising concerns when it becomes a barrier.
For the latter, $30,000 historically acts as a level where selling pressure tends to intensify, impacting short-term and long-term price movements. These are the reasons traders and investors closely monitor the price level, making it a critical reference point in the cryptocurrency market.
Prospects of the Bitcoin ETF
There’s a lot of excitement about the possibility of the United States Securities and Exchange Commission allowing a Bitcoin exchange-traded fund (ETF).
These futures exchange-traded funds (ETFs) are pools of bitcoin-related assets offered on traditional exchanges by brokerages to be traded as ETFs. The intent behind these ETFs is to give retail and other investors exposure to cryptocurrencies without needing to own them.
A Bitcoin ETF is a big deal because it makes it easy for regular folks to invest in the coin without needing to deal with all the complicated stuff that comes with digital currencies. It’s like a bridge that connects the regular money world with the wild world of cryptocurrencies, which could help more people get into it.
Last Monday, the crypto community was sent into a frenzy by a social media post from Cointelegraph regarding the U.S. Securities and Exchange Commission’s (SEC) approval of a Bitcoin ETF.
The report which suggested that the SEC had given the green light to BlackRock’s iShares Bitcoin ETF made Bitcoin experience a meteoric rise, soaring from $27,00 to as high as a staggering $30,000. Although the euphoria was short-lived, it shows us the power of what Bitcoin ETF approval can do for the price of the cryptocurrency and the general market.
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For the struggling cryptocurrency market, industry experts think it’s very likely that the United States will approve this kind of investment fund for Bitcoin soon and the news could be a major reason for Bitcoin’s price to go up.
When will the ETF be approved?
Several industry experts are suggesting that the long-anticipated approval of a spot Bitcoin exchange-traded fund (ETF) could materialize sometime between late 2023 and early 2024.
If BlackRock’s spot Bitcoin ETF is approved, Matrixport, a provider of cryptocurrency services, projects that the price of Bitcoin would rise to between $42,000 and $56,000. A basis of this optimistic forecast is the community of registered investment advisors and prospective investment inflows from gold ETF investors.
Recall that the financial industry is currently witnessing the active participation of major players such as BlackRock, which manages assets above $10 trillion and is currently pursuing the approval of their applications for an ETF, players anticipate widespread participation in the ETF and a subsequent surge in the run-up to the halving in April 2024.
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