The past week has been really bullish for the cryptocurrency market as Bitcoin and the majority of altcoins witnessed massive gains.
On Tuesday, Bitcoin witnessed a substantial price surge, extending its recent impressive performance as the foremost digital currency. The biggest cryptocurrency by market cap is currently trading at $33,922 after a 17% surge on the weekly chart. Yesterday, BTC had been hovering around the $35,000 range.
Coinbase Global (COIN) experienced a commendable uptick of around 9%, while MicroStrategy (MSTR) saw a significant boost of 12%.
The recent upswing in Bitcoin’s value can be attributed, at least in part, to growing enthusiasm surrounding the possibility of exchange-traded funds (ETFs) that are based on the actual market value of Bitcoin rather than Bitcoin futures. Some market analysts are pointing to the recent listing of BlackRock’s iShares Bitcoin Trust by the Depository Trust and Clearing Corporation, a crucial institution providing market-clearing and settlement services in the United States, as a promising signal that ETFs based on Bitcoin may soon receive regulatory approval for trading.
This resurgence in Bitcoin’s price brings it back to levels last observed in May 2022, just before the cryptocurrency market faced a turbulent period marked by a series of high-profile crises and controversies. This included the devaluation of stablecoins, the collapse of a substantial cryptocurrency hedge fund, and the downfall of the FTX exchange.
These incidents led to significant financial losses and a loss of confidence among investors and prompted authorities across the globe to intensify their scrutiny of the cryptocurrency industry.
Many industry insiders view the possible introduction of ETFs as a positive step toward the establishment of more robust regulatory frameworks for the cryptocurrency sector. Such regulations are anticipated to contribute to the reduction of market volatility, increased liquidity, and, ultimately, more widespread adoption of cryptocurrencies. Steen Jakobsen, Chief Investment Officer at Saxo Markets, expressed his belief that these regulatory measures are essential for creating a less volatile and more liquid crypto market, paving the way for broader acceptance in the future.
