The price of Bitcoin (BTC) continues to rise and surpassed the US$37,000 mark this Thursday morning (09). This is the first time this has happened since May 2022, when the Terra (LUNA) ecosystem collapsed and brought down the cryptocurrency market.
According to data from CoinGecko, at the time of writing this article, the largest digital currency on the market is heading towards the US$38,000 mark, being quoted at US$37,800 at the time of writing this article. Bitcoin has risen by 7% in the last 24 hours alone and more than 37% in the last 30 days.
Despite the rise, the price of Bitcoin is still a long way away (-45%) from its all-time high of US$69,000 recorded in November 2021.
Why did Bitcoin go up?
Apparently, this upward movement in Bitcoin still has to do with the possibility of the United States Securities and Exchange Commission (SEC) approving one (or more) spot Bitcoin ETFs (exchange-traded funds).
The market is eagerly awaiting approval because the approval is expected to attract large investments into Bitcoin. As demand increases – and supply decreases, as BTC is deflationary – the price of Bitcoin is expected to rise.
Hopes about approval rose on Wednesday. That’s because a report indicated that the SEC is in talks with Grayscale Investments over the details of the company’s request to convert its Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), into a spot BTC ETF.
Bloomberg Intelligence analyst James Seyffart is optimistic about the ETF’s ordeal. According to Seyffart, Bloomberg analysts generally believe there is a 90% chance of the regulator approving the ETF by January 10th.
“Delay orders were issued by the SEC to BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity & Valkyrie at the same time,” it said. “If the agency wants to allow the release of all 12 orders – as we believe – this is the first available window since Grayscale’s legal victory was affirmed.”