The Rise of Bitcoin: ETF Frenzy Pushes Price to $34.5K

Markets First Mover Americas: Bitcoin at $34.5K on ETF Excitement

The latest price moves in crypto markets in context for Oct. 24, 2023. By Lyllah Ledesma

After briefly pushing past $35,000 toward the end of the U.S. trading day on Monday, bitcoin has consolidated to levels around $34,500. The world’s largest cryptocurrency has gained 12% over the past 24 hours.

BlackRock’s Bitcoin ETF Listing

Analysts are attributing the sudden jump in bitcoin‘s price to BlackRock listing its bitcoin exchange-traded fund (ETF) on the Depository Trust & Clearing Corp. database with the ticker $IBTC. BlackRock has also updated its filings with the SEC, indicating a readiness to seed the ETF starting from October 2023.

“This proactive approach from Blackrock suggests their preparedness to initiate trading promptly upon receiving approval from the SEC, further substantiating the optimistic sentiment surrounding an impending approval,” said Matteo Greco, a research analyst at Fineqia, in a morning note.

This news has pushed bitcoin back to levels last seen in May 2022, before the Terra-Luna, Three Arrows Capital, Genesis, and FTX debacles turned the mood sour and caused BTC to approach $15,000.

Binance’s High-Level Executive Departures

Meanwhile, Binance, the world’s largest crypto exchange, continues to face challenges as its head of U.K. operations, Jonathan Farnell, left the firm in September. This departure follows a stream of high-level executives leaving the company.

“We’d like to thank Jonathan for his contributions and wish him all the best on his next challenge,” Binance said in an emailed statement.

Bearish Bets Cost Traders $178 Million

The recent surge in bitcoin‘s price has cost traders over $178 million in the past 24 hours due to bearish bets. Bitcoin-tracked futures accounted for nearly 50% of the total $400 million in crypto liquidations, with ether futures also experiencing $50 million in liquidations over long and short positions.

Liquidation occurs when an exchange forcibly closes a trader’s leveraged position due to a loss of the initial margin. In this case, traders were unable to meet the margin requirements to keep their leveraged positions open.

The Fear and Greed Index Shows Sentiment Shift

The fear and greed index, which tracks investor sentiment, is currently reading “greed” for the first time since mid-July. Readings above 60 indicate market sentiment has moved into the “greed” stage, while readings below 40 indicate “fear.” The shift from “neutral” to “greed” occurred after bitcoin reached a 16-month high on Monday.

Editorial

The recent price movements in the crypto market, specifically with bitcoin, are drawing attention to the increasing influence of institutional players like BlackRock. The listing of BlackRock’s bitcoin ETF on the Depository Trust & Clearing Corp. database indicates a growing acceptance and adoption of cryptocurrencies by traditional financial institutions.

This development is significant as it further validates the potential of bitcoin and cryptocurrencies as a mainstream investment asset. The readiness of BlackRock to initiate trading promptly upon approval from the SEC indicates confidence in the future prospects of the crypto market.

However, it is important to note that the crypto market remains highly volatile, as evidenced by the significant liquidations and the fear and greed index reading “greed.” Investors and traders should exercise caution and carefully assess their risk appetite before engaging in cryptocurrency trading.

Advice for Investors

For investors interested in entering the cryptocurrency market, it is crucial to conduct thorough research and due diligence. Understand the fundamentals of the specific cryptocurrency you are considering and assess its long-term potential.

Additionally, consider your risk tolerance and investment goals. Cryptocurrencies can experience significant price fluctuations, and it is important to be prepared for potential losses. Diversification is also key – spreading investments across different cryptocurrencies and asset classes can help mitigate risk.

Lastly, consider consulting with a financial advisor who specializes in cryptocurrencies. They can provide valuable insights and guidance to navigate the complex and ever-changing crypto market.