The bulls seem to be stampeding in Bitcoin (BTC). Is this a sign that the crypto winter is over?
Current Status of Bitcoin
As of this writing at 2:15 AM UTC time, Bitcoin is trading around $34,418 showing a whopping 24-hour rise equivalent to 14.14% with a trading volume of $41.52 billion. The market cap of the digital asset is currently around $671.35 billion with a circulating supply of 19.52 million.
The day’s range saw the cryptocurrency swing between $32K to $35K mark and it’s now on its 52-week peak from the base of $15,599.05. From the looks of it, it continues to move on an upward trend.
Bitcoin ETF Anticipation
Analysts are currently attributing the upward swing to the anticipation of the impending launch of a Bitcoin Exchange Traded Fund (ETF). Market data shows that there is an uptick in weekly crypto asset inflows triggered by institutional investors who are going bullish for BTC.
Lately, there has been a surge in positive sentiment regarding the potential approval of Bitcoin ETFs in the United States. This enthusiasm has been fueled by a recent court decision in favor of Grayscale, which has increased the likelihood of converting its prominent GBTC product into an ETF.
Additionally, BlackRock’s application to list a Bitcoin ETF took a noteworthy step as its proposed product, IBTC, was assigned a unique ID number on the Depository Trust & Clearing Corp. website. According to Bloomberg Senior ETF Analyst Eric Balchunas, while this does not signify ETF approval, many observers interpreted it as a sign of the company’s confidence in the eventual success of its application.
Meanwhile, finance lawyer Scott Johnson revealed that Blackrock has already obtained seeding for its Bitcoin ETF. Balchunas clarified, however, that the seeding or the initial investment is usually a modest amount that’s just sufficient to kickstart an ETF.
With that, it’s important not to misinterpret this as a significant acquisition of Bitcoin by BlackRock. Rather, their action of seeding and making it public marks another progression in the path toward launching the ETF.
Stefan Rust, CEO of independent inflation data aggregator Truflation and former CEO of Bitcoin.com believes that we are in the early stages of a “Crypto Spring” and that it I likely that some Bitcoin ETFs will be approved in the coming months.
There is a sense that this US ETF is actually real now – after years and years of waiting. Among the 21+ submissions sitting with the SEC, it seems likely some five to six will be approved in one go.
Stefan Rust, CEO of Truflation and former CEO of Bitcoin.com
Golden Cross Looming
On the technical side, Bitcoin’s 20-day moving average has recently risen slightly higher than its 200-day moving average. This development is generally seen as a favorable sign.
In relation to this, numerous traders are eagerly anticipating the much-discussed “golden cross,” which involves the 50-day moving average crossing above the 200-day moving average. This is considered a crucial indicator in the cryptocurrency market that signals an uptrend or upcoming bullish scenario.
Final Thoughts
To wrap things up, the recent surge in Bitcoin’s value and the positive outlook in the cryptocurrency market have sparked discussions of whether the crypto winter is truly over. With Bitcoin trading at a substantial 24-hour gain and reaching a 52-week peak, optimism is running high.
One major factor contributing to this bullish sentiment is the anticipation of a Bitcoin ETF. Institutional investors appear to be increasing their investments in cryptocurrencies, further driving the market upwards. Moreover, BlackRock’s involvement in the ETF space has garnered attention, although it’s essential to note that the initial seeding amount should not be misconstrued as a significant Bitcoin acquisition.
Technically, Bitcoin’s moving averages are aligning favorably, with the prospect of a “golden cross” on the horizon, a crucial indicator signaling a potential uptrend. But then again, amidst this optimism, traders should exercise caution.
The cryptocurrency market is known for its volatility, and past performance is not always indicative of future results. It’s crucial to conduct thorough research, have a well-defined investment strategy, consider other factors outside the things discussed here, and consider the potential risks before riding the bandwagon.