Bitcoin remained stable on Friday following a recent rally, as traders remained optimistic. However, the real highlight of the day was the second-largest cryptocurrency, Ether, as asset manager BlackRock filed for an Ether exchange-traded fund (ETF).
Over the past 24 hours, the price of Bitcoin has experienced a slight dip of less than 1%, with it currently standing at $36,000. This comes after reaching a peak near $38,000 on Thursday, which marked the highest level for the token since early May 2022, just before the crypto market entered a bearish period. Within a month, the leading digital asset has surged by over 30%, breaking free from historically low volatility and trading volumes.
One significant factor contributing to this bullish momentum is the limited circulating supply of Bitcoin in the market. Approximately 90% of Bitcoins in circulation have remained unchanged for over three months. As a result, newcomers are left chasing after the remaining 10%, further driving up the price, according to Rachel Lin, CEO of trading platform SyFutures. Lin also highlighted a strong bullish bias in the derivatives market, with call options contracts heavily concentrated around price targets at $40,000, $45,000, and $50,000 levels.
While there has been recent optimism regarding interest rates reaching their peak, which has positively impacted all risk-sensitive assets susceptible to higher borrowing costs, Bitcoin has significantly outperformed both the Dow Jones Industrial Average and the S&P 500.
With Bitcoin holding its ground and BlackRock’s filing for an Ether ETF, the cryptocurrency market continues to attract attention and generate excitement amongst traders. Despite a slight decline in Bitcoin’s price over the past 24 hours, its overall rally remains strong, fueled by factors such as limited circulating supply and a bullish derivatives market. As cryptocurrencies gain momentum, they demonstrate their ability to outperform traditional financial assets like the Dow Jones and the S&P 500.
Bitcoin’s Bullish Momentum Boosted by BlackRock’s Filing for Ether ETF
Bitcoin’s impressive performance can be attributed to the anticipation of regulatory approval for the first-ever spot Bitcoin exchange-traded fund (ETF). This approval is expected to ignite a fresh wave of interest in cryptocurrencies. During the summer, when BlackRock and other major financial players submitted filings for their own spot Bitcoin ETFs, market confidence grew, reinforcing the belief that regulatory approval is inevitable.
BlackRock has once again made a significant move, this time filing for an Ether ETF. Similar to its previous Bitcoin ETF filing that resulted in a surge in prices, this announcement sent the value of the second-largest token to its highest point in 18 months. Within the past 24 hours, Ether experienced a 10% surge, reaching above $2,100, with a peak near $2,150.
Bradley Duke, the Chief Strategy Officer at exchange-traded product group ETC, commented on BlackRock’s application: “BlackRock’s application for an Ethereum Spot ETF further proves that the investment world is readying itself to embrace crypto assets. It makes sense that following any approval of a spot Bitcoin ETF by the SEC, approval of a spot Ethereum ETF would follow closely.”
While Bitcoin and Ether gained momentum, other smaller tokens and altcoins also saw positive movement. Cardano recorded a 2% increase, while Polygon witnessed a 3% rise. However, memecoins like Dogecoin experienced a slight decline of 1%, and Shiba Inu shed 3%.
Overall, the market is eagerly watching for regulatory decisions regarding Bitcoin and Ethereum ETFs, which may pave the way for wider acceptance of cryptocurrencies as legitimate investment assets.