Bitcoin has once again demonstrated its volatility, soaring to $35,000 and setting this year’s record.
The largest cryptocurrency, bitcoin, has risen in price by more than 11% over the past day and briefly rose to $35,000 for the first time since 2022.
It is noted that over the past week, the bitcoin rate has increased by about 20%.
The last time the value of bitcoin exceeded $35,000 was on May 7, 2022.
The main reason for the current growth is the expectation that the United States will soon approve the opening of spot cryptocurrency ETF – exchange-traded funds whose price will be tied to bitcoin. They can facilitate the entry of large investors into the crypto market who are not ready to buy digital assets directly, fearing inadequate legal regulation and storage problems.
Funds with multibillion-dollar assets, such as BlackRock and Fidelity Investments, have applied to open ETFs. Proponents of digital assets are confident that ETFs will expand the distribution of cryptocurrencies.
The second reason is the decision of the US federal court in favor of Grayscale Investments in a dispute with the US regulator SEC over the conversion of the Grayscale Bitcoin Trust Fund into a spot ETF.
The US Securities and Exchange Commission has so far not authorized ETFs that invest directly in bitcoin, citing the risks associated with it – fraud and market manipulation. The court’s decision and a flurry of applications from investment heavyweights to launch spot ETFs have led to speculation that the agency will soften its stance.
As a reminder, since the beginning of this year, Bitcoin has risen by more than 82%. Despite the growth, its rate is still significantly lower than its historical high – in November 2021, the cryptocurrency cost more than $69,000.